Lucart and Intesa Sanpaolo: ESG objectives drive interest rate coverage
The renewal of the partnership between the European paper company and the banking group provides for a mechanism to encourage sustainable performance
Lucart, one of the largest European paper groups, known for the Tenderly, Grazie Natural and Tutto Pannocarta brands, has renewed its partnership with Intesa Sanpaolo by signing an agreement to hedge the risk of rising interest rates linked to the achievement of ESG objectives (Environmental, Social and Governance).
The coverage strategy of the new contract foresees a mechanism to encourage sustainable performance: if the ESG goals are not achieved, Lucart undertakes to donate to a non-profit institution or association identified by both parties, engaged in social actions and sustainable projects or initiatives consistent with the company’s sustainability policies.
The agreement, which aims to reward Lucart’s virtuous behavior in matters related to sustainability, sanctions a new phase of collaboration with the banking institution after the signature in recent months of a €10 million loan to be invested in supporting sustainability and the circular economy.
“Today, a large part of the Lucart Group’s financial instruments is linked to ESG objectives. We have been happy to study the product with the Intesa Sanpaolo team and are very pleased to have concluded an innovative operation that allows us to consolidate our commitment to ESG issues,” declared Andrea Fano, financial director of Grupo Lucart.
A structure, therefore, that differs from the most common interest rate risk coverage operations that incorporate ESG objectives that traditionally aim at a reduction, or an increase, of the fixed rate of the coverage instrument depending on the achievement, or not, of the targets ESG.
ABOUT LUCART
Lucart is a multinational group that promotes a sustainable way of producing paper. Through a systemic approach that aims to optimize the use of raw materials and reduce waste, transforming it into new resources.
The productive activities of the company, founded in 1953 by the Pasquini family, are spread over three business units (Business to Business, Away from Home and Consumer), focused on the development and commercialization of tissue products with brands such as Tenderly, Tutto and Grazie Natura.
ABOUT INTESA SANPAOLO
Intesa Sanpaolo is Italy’s largest banking group – a benchmark for households, businesses and the real economy – with a significant international presence.
Intesa Sanpaolo’s distinctive business model makes it a European leader in Wealth Management, Protection & Advisory and characterizes its strong focus on digital and fintech. An efficient and resilient bank, controller of product factories in asset management and insurance.
The strong commitment to the ESG area foresees, by 2025, €115 billion in impact loans, aimed at the community and the green transition, and contributions of €500 million to support people in difficulty, placing Intesa Sanpaolo at the top of the world for impact.
Intesa Sanpaolo has made Net Zero commitments for its emissions by 2030 and by 2050 for its lending and investment portfolios, asset management and insurance businesses.
