UPM links EUR 750m loan to forest biodiversity and CO2 targets

BNP Paribas works with Finnish group UPM on one of the first revolving credit facilities linked to biodiversity and CO2 emission reductions.


In March 2020, BNP Paribas acted as sustainability coordinator for Finnish forest-based bioindustry company UPM‘s €750 million revolving credit facility (RCF).

UPM is one of the first companies to link the pricing mechanism of an RCF to its biodiversity and climate-related targets. The margin of the loan is tied to two key performance indicators (KPIs):

  • a net positive impact on biodiversity in the company’s forests in Finland
  • a 65% reduction in CO2 emissions from fuels and purchased electricity between 2015 and 2030, in line with UPM’s commitment to the United Nations’ Business Ambition for 1.5°C.


The €750 million credit facility is the first step in building the funding base for UPM’s transformation projects. The five-year facility has two one-year-extension options.

UPM is no newcomer to work on biodiversity: it created its strategic biodiversity programme 20 years ago!