DLG secures landmark sustainability-linked loan

DLG Group secures €1.1 billion sustainability-linked loan tied to targets to reduce Scope 3 emissions from the value chain.

DLG Group, a cooperative owned by 25,000 Danish farmers and one of the largest farm supply companies in Europe by revenue, has secured a €1.1 billion sustainability-linked loan (SLL).  

This transaction is TCFD-compliant and includes targets on:

  • Reduction of GHG Scope 1, Scope 2 and Scope 3 emissions aligned with Science Based Targets initiative (SBTi) validated trajectory;
  • Share of imported deforestation-free soy, evolving to SBTi’s Forest, Land and Agriculture (FLAG) targets on emissions from agriculture in 2024.

The SBTi’s Forest, Land and Agriculture (FLAG) guidance focuses on a common, robust, science-based understanding on how much and how quickly a company needs to cut its land-related emissions in line with the Paris Agreement’s goal to limit global warming to 1.5°C.

BNP Paribas acted as Co-Sustainability Coordinator, Bookrunner and Mandated Lead Arranger, to structure the facility together with DLG Group.

“It was natural for us to once again link the financing agreement to our sustainability goals and include the Scope 3 target, because it represents more than 98% of our total climate footprint. We will make the biggest difference by far in the green transition for our customers, owners and the world around us by maintaining a focus on our value chain” says Christina Nielsen, DLG Group CFO.

“We are proud to have worked in close cooperation with DLG Group teams to secure this landmark transaction and progress the market for sustainable finance to address key climate and biodiversity topics” says Ulrik Ross, BNP Paribas Denmark CEO and Head of CIB Denmark.