The factoring program of Aurubis AG, a supplier of non-ferrous metals and a major copper recycler, will also be equipped with an ESG link with an initial volume of € 150 million over three years. This refers to Environmental and Social Governance, i.e., sustainable corporate management. The volume is to be successively increased to € 300 million.
Following a syndicated loan and a promissory note loan, Aurubis is now linking another financing instrument to the development of its EcoVadis rating. Most of the Aurubis Group's financing is thus linked to its sustainability performance.
"Acting sustainably is not only a central component of our Group strategy, but an important element of our self-image. It's only logical that we apply this standard to all our financing instruments as well. In this way, we live sustainability not only in our operating business, but also in all supporting functions - and we emphasize that sustainability is a fundamental part of our corporate strategy," explains Rainer Verhoeven, Chief Financial Officer at Aurubis.
Sustainability at Aurubis
Aurubis will link the new factoring program to its rating on the EcoVadis sustainability rating platform. Currently, Aurubis holds Gold status with 73 out of 100 points, placing it among the top 2 percent of companies in the non-ferrous metals industry worldwide.
Aurubis' performance in sustainability is reflected in the annual EcoVadis rating and, through the link, directly influences the calculation of the interest rate for the compensation of the purchase of receivables. The multi-metal supplier receives more favorable interest rates for the purchase of receivables if the rating improves; if the rating score is lower, the conditions increase. This creates an incentive for Aurubis to further advance its sustainability efforts, as there is a direct link between the financing instrument and the EcoVadis rating.