Pandora issues rare sustainability-linked bond tied to gender diversity goals.
In this week's Careers Newsletter, read BoF senior correspondent Sheena Butler-Young's latest: Pandora Issues Rare Sustainability-Linked Bond Tied to Gender Diversity Goals. In an uncommon move, Pandora has become one of only a few global companies to raise debt against its ability to meet gender diversity targets. On Thursday, the Copenhagen-based jewellery giant issued a €500 million ($540 million) sustainability-linked bond on Ireland's main stock exchange. Like many other companies, Pandora linked the debt to its goal of achieving a 36 percent reduction in carbon emissions by 2028 — but it's also tied to its gender diversity target of having 44 percent women in leadership by the same deadline. If Pandora fails to meet its targets, it will face a penalty of roughly €5 million on the loan. The fines are split 60 percent (€3 million) for carbon emission goals and 40 percent (€2 million) for gender diversity targets. Currently, all of Pandora's financing — including two bonds, a revolving credit facility and a loan from the Nordic Investment Bank — is linked to sustainability. Across fashion and other industries, similar sustainability-linked financial mechanisms are becoming an increasingly popular source of capital for climate-friendly initiatives. Companies like Chanel, VF Corp, Burberry, and Adidas have all taken on debt tied to environmental initiatives in recent years but only a few companies — in sectors like private equity and energy — have tied their bonds to gender goals. → READ MORE | |
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