Within the framework of sustainability

In order to be able to launch sustainable financing instruments more quickly, the Dürr Group has laid down the basic principles for this in a framework. Christian Aue, Head of Treasury, and Hanjo Hermann, Head of Corporate Sustainability, answer the most important questions regarding the new → Sustainable Finance Framework.

Why has the Dürr Group adopted a framework for green financing?

Aue: We want to make the principles of our sustainable corporate financing transparent for the capital market. This includes, for example, the question of which sustainability goals we want to be measured against when we issue Schuldschein loans or bonds with a sustainability component.

Hermann: With the Sustainable Finance Framework, we are also driving forward the transformation within our own company. That’s because the principles set out in the framework enable us to use the money in areas in which we want to become more sustainable. Examples include measures to increase energy efficiency and the expansion of our self-generated electricity.

How can a Schuldschein loan be sustainable?

Aue: We conclude an additional agreement with the Schuldschein buyers: We link the interest on our financing to specific sustainability goals, such as the reduction of our CO₂ emissions. If we achieve the goals, we will pay less interest. This is not only great for us and the environment. Our investors see that we are on the right track when it comes to sustainability — a key component of our → strategy — which, in turn, is positive for the Group. If we fail to meet our sustainability goals, we will have to pay more interest. Then the investors are compensated, so to speak, for the fact that we do not meet a target agreed with them.

Why are green financing instruments so important for companies like the Dürr Group?

Hermann: The market for green investments has been growing significantly for years. Investors are increasingly looking for investment opportunities in sustainable business sectors. However, demand is rising not only from private and institutional investors, but also from commercial banks. These are attaching increasing importance to a credit portfolio with the lowest possible climate and environmental risks.

Aue: The fact that we are transparent about the sustainable projects in which our funds are invested meets with great approval from the capital market. We expect increased demand for future financing, which should have a positive impact on conditions.

Other companies have already adopted a sustainable finance framework. What is so special about the Dürr Group’s framework?

Hermann: We are one of the first companies to comply with the new rules of the EU Taxonomy Regulation, which has been in force since 2022. In simplified terms, it represents a Europe-wide classification system that specifies criteria for environmentally sustainable business activities, thus enabling external parties to see how sustainably a company is operating. The associated duty to report does mean considerably more effort. However, we see this as an opportunity because it allows us to show how much we have already initiated in the area of sustainability and what we are still planning to do.