Credit Agricole has provided PLN 76 million in financing to AB S.A., a company listed on the Warsaw Stock Exchange, under an ESG KPI Linked Loan structure. The transaction combines support for business growth with the achievement of measurable sustainability targets.

Preferential ESG-linked financing confirms that the energy transition is becoming an important direction for business development, while financing linked to sustainability targets is playing an increasingly significant role in supporting these ambitions.

– We are pleased to support AB S.A. – the largest IT distributor in the CEE region – in achieving its ambitious business and environmental goals. The transaction supports the decarbonization of its operations and the development of responsible procurement practices. It is a model example of how responsible development is becoming an integral part of corporate strategies and is increasingly reflected in financial decisions – says Agata Jakóbczyk, Head of the Corporate Banking Department at Credit Agricole.

Environmental and social responsibility is becoming an increasingly important element of building a company’s market position.

– We feel responsible for helping shape market standards, while climate-related issues and social responsibility are becoming important elements in assessing companies’ credibility on the global market. AB Group is prepared to meet the expectations of the modern market and wants to demonstrate that digital transformation and care for the planet can go hand in hand – says Zbigniew Mądry, CEO of AB S.A.

The Business Case for the Energy Transition

The financing provided to AB S.A. is linked to the achievement of two key ESG indicators. The first concerns increasing the share of renewable energy generated by the company’s own photovoltaic installation in total electricity consumption. The second relates to the share of IT equipment purchased for the company’s own use that holds recognized environmental and social certifications, including EPEAT and TCO Certified.

– At AB, we approach sustainability primarily through the lens of practical operational and financial decisions. We therefore value opportunities to reduce financing costs when they are linked to ESG aspects that also have a clear business rationale. Certified IT equipment and the energy transition are areas that, in our case, translate into greater operational efficiency, better cost control and long-term business resilience. These are measurable solutions that are aligned with the responsible development of our company – Grzegorz Ochędzan, Vice President of the Management Board for Finance at AB S.A.

In line with its strategy, Credit Agricole has been supporting corporate clients in their energy transition for many years. This enables companies to combine the implementation of their business plans with action for the climate and responsible development.

– We believe that investments in the energy transition are investments in the long-term resilience of businesses. Companies that consistently reduce their environmental impact, manage resources more efficiently and implement responsible business practices are better prepared for economic challenges and market uncertainty. As a bank, our role is to support clients in this transition through appropriately tailored financial Solutions – Frederic Lustig, Head of Green Banking at Credit Agricole.

Sustainability-Linked Loans

An ESG KPI Linked Loan is a financing solution designed for companies implementing or embarking on a transformation towards a sustainable business model. Financing terms are linked to the achievement of agreed ESG indicators, while meeting sustainability targets may result in lower financing costs. The solution is intended to encourage companies to implement specific, measurable environmental, social and corporate governance initiatives while supporting their business development.

In addition to ESG KPI Linked Loans, Credit Agricole also offers financing under the Sustainability Linked Loan (SLL) formula. In the case of SLL facilities, financing terms depend on the achievement of agreed ESG targets, with progress verified through reporting and independent assessment.