ArrowMetals is pleased to announce that it completed a USD 150 million TCF transaction in November 2022 with its trade finance partner ING.
The bilateral uncommitted TCF line of USD 150 million is linked to ArrowMetals’ annually updated EcoVadis ESG Rating and is aligned with sustainability-linked loan principles.
ArrowMetals’ assessment covers all ESG performance areas: 1. Environment, 2. Labor & Human Rights, 3. Ethics, and 4. Sustainable Procurement as per Ecovadis’ evaluation methodology. As an office-based physical commodities trading house, the ESG Rating is primarily focused on the supply chain.
The ESG Rating constitutes a key metric value to validate the implementation of sound sustainability practices. ArrowMetals is the final recipient of the funds and its rating serves as a benchmark and an incentive for continual ESG improvement.
Specifically, if ArrowMetals improves its ESG Rating above a pre-agreed target, a discount on the margin is received. On the contrary, if the company’s rating worsens, it pays a premium over the margin. The benchmarks are readjusted upwards after two years to incentivise continual improvement.
We are pleased to have obtained a silver medal for ArrowMetals’ initial Ecovadis rating. We are proud to join the top 11% of the world’s ESG-rated metals and minerals traders and to be classified in the world’s top 3% for our sustainable procurement practices. Our collaboration and partnerships with our stakeholders on sustainability enable us to continually improve our sustainable journey, and to deliver on the expectations and requirements of our banks, customers, employees and other key stakeholders.”
Stephen Thomas, Head of ESG & Sustainability
ArrowMetals recognises the importance of the systemic integration of ESG into its business practices. Supporting the decarbonisation of its suppliers’ industrial processes to meet the goals of the Paris Agreement is also a key component of our sustainable strategy. We achieve this by working with our principal suppliers and world-class service providers who assist us in Carbon Accounting and Life Cycle Analysis assessments to target potential GHG reductions.
ArrowMetals is a member of the London Metal Exchange (LME). We also embed many industry standards and protocols into our operational procedures such as the Responsible Minerals Initiative (RMI) and collaborate with our suppliers in adopting TowardsSustainableMining (TSM) protocols and the IFC Performance Standards for the responsible procurement of metals and minerals. ArrowMetals is part of the ArrowResources AG group of companies.
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