OSLO (Reuters) – Yara <YAR.OL> signed a $1.1 billion (£879 million) five-year revolving credit facility to achieve its carbon dioxide-intensity targets, the fertiliser manufacturer said on Tuesday, in a move which could make it the first Norwegian company to do so.
Companies worldwide are under pressure from some of their investors to address the environmental impact of their operations, particularly regarding greenhouse gas emissions.
“By connecting financing to carbon footprint performance, we confirm a clear link between sustainability and profitability,” Yara Chief Financial Officer Lars Roeseag said in a statement.
Producing ammonia fertiliser requires the use of vast amounts of hydrocarbon feedstock, including natural gas.
Yara’s carbon intensity target is to achieve a 10% reduction in greenhouse gas per tonne of fertiliser produced by 2025.
(Reporting by Victoria Klesty, Editing by Sherry Jacob-Phillips)