The loan incorporates interest rate reductions linked to pre-determined Environmental, Social and Governance (ESG) targets in areas such as operational eco-efficiency, human rights and biodiversity, allowing CJCJ to enjoy savings in borrowing costs as it achieves these ESG targets.
CJ Cheiljedang Corporation spokesman, said, “Sustainability is of great importance to our business strategy and strengthening our green funding sources is integral in our transition roadmap towards more ESG-conscious operations. We are pleased to secure our first sustainability-linked loan from DBS Bank. This will support us in our continuous efforts to drive ESG improvements, as we deliver CJ Cheiljedang Corporation’s vision to be an industry leader in redefining the future of food production for a more sustainable future.”
Tan Su Shan, Group Head of Institutional Banking, DBS Bank, said, “With the need to achieve net-zero economies by 2050, we are excited to work alongside CJ Cheiljedang Corporation as it forges ahead on its sustainability journey. Its inaugural sustainability-linked loan is pegged to clear ESG targets to create positive impact across dimensions such as operational eco-efficiency, human rights and biodiversity, paving the way for more food players in Korea to tap ESG financing for their sustainability transitions.”
To increase its support for businesses seeking to achieve their sustainability ambitions, DBS has committed to finance SGD 50 billion in renewable, clean-energy and green projects by 2024, more than twice its previous target of SGD 20 billion. DBS is also the first Singapore bank to offer transition financing and launched the world’s first Sustainable and Transition Finance Framework and taxonomy in 2020 to help clients advance on their sustainability journeys. The bank announced in October 2021 that it is the first Singapore bank to become a signatory on the United Nations-convened, industry-led Net-Zero Banking Alliance (NZBA). In doing so, DBS commits to transition operational and attributable greenhouse gas (GHG) emissions from its lending and investment portfolios to align with pathways to net zero by 2050 or sooner. The bank will also publish annually, absolute emissions and emissions intensity in line with best practice and within a year of setting targets, as well as take a robust approach to the role of carbon credits/ offsets in transition plans.
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About CJ Cheijedang Corporation CJ Cheiljedang Corporation (“CJCJ”) is now a "Global No.1 Food & Bio Company". CJCJ started as Korea's first sugar manufacturing company in 1953 and continued to grow into a global lifestyle and culture company. Its Korean food brand Bibigo also introduces Korean flavours to the world's dining table; it acquired Schwan's Company in 2019 and since has a U.S.-wide food production, distribution, and R&D infrastructure. CJCJ has global no.1 status in five “green biomaterials” and is one of the few companies in the world that can mass-produce PHA (Polyhydroxyalkanoate), an eco-friendly plastic material that biodegrades in the ocean.
About DBS DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021. DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
