Pierre Fabre successfully renegotiates its revolving credit facility by linking it to CSR criteria
23 December 2020
Castres (France), December 23, 2020 – The Pierre Fabre group has successfully renegotiated its long-term (2025) revolving credit facility by linking it to CSR criteria. All financial partners part of the banking syndicate coordinated by Société Générale have thus demonstrated their confidence in Pierre Fabre's CSR ambition and strategy. The amendment also includes a new five-year Capex line of credit.
Since its creation in 1962 by a humanist pharmacist with a passion for botany, the Pierre Fabre group - today owned by a government-recognized public-interest foundation - has always put corporate social and environmental responsibility at the very heart of its business model. The Group’s transformation plan, launched in 2019, included the deployment of the innovative “Green Mission Pierre Fabre” initiative to achieve continuous improvement in the realms of sustainable development and naturality.
Pierre Fabre's renegotiated revolving credit facility now includes a bonus-penalty system that links the cost of the credit facility to two CSR criteria driven by “Green Mission Pierre Fabre”:
- the reduction of the Group’s carbon footprint (a 30% reduction of emissions by 2025 versus 2015);
- the implementation of an innovative social- and eco-designed product initiative (100% of new product developments as from 2019, 50% of the entire product portfolio by 2023, excluding pharmaceutical specialties).
Progress towards the achievement of these targets will be reviewed by Pierre Fabre and its financial partners every year. If one or both targets are not met, the penalty will be allocated to internal compensation measures or paid to external partners in order to offset the failure to meet the criterion, or criteria, in question.
By signing this amendment that links financial targets to CSR, we are demonstrating our conviction that the commitments made as part of Green Mission Pierre Fabre to reduce the Group’s carbon footprint and develop eco-friendly products will be fulfilled.
Green Mission Pierre Fabre Vice President
We are delighted to have succeeded in linking our revolving credit facility to our CSR performance. This unprecedented linking for the Pierre Fabre group shows that financial strategy and CSR strategy can complement and reinforce one another. It also shows that our financial partners have confidence in Pierre Fabre and its transformation plan.
Group CFO & Legal Affairs
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