Faerch Group Holding, a Danish thermoformed food packaging supplier, has entered a ten-year sustainability-linked loan agreement with the Nordic Investment Bank (NIB).
As per the agreement, NIB will provide a €100m ($105m) loan, which is earmarked for the expansion and development of the company's recycling facilities across Europe.
It is set to bolster Faerch's efforts in achieving its technology development and circularity goals, contributing to the broader aim of a net-zero and circular food packaging industry.
The loan includes two key performance indicators (KPIs) that are central to Faerch's operational targets. These KPIs are tied to the reduction of carbon dioxide equivalent emissions and the efficiency of the recycling process, measured by recycling yield.
Meeting these sustainability performance targets will not only advance Faerch's environmental objectives but also improve the company's financing conditions.
NIB is an international financial institution jointly owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden.
NIB president and CEO André Küüsvek said: “Faerch's commitment to transitioning to net-zero and circular food packaging aligns with NIB's mandate to support projects mitigating climate change and enhancing resource efficiency.
"As such, this sustainability-linked loan, tied to ambitious key performance indicators, is an important addition to our portfolio promoting circularity.”
With a global footprint, Faerch serves over 4,600 customers and maintains more than 25 production sites. It has a workforce of approximately 5,500 employees across Europe and the US. The company's ownership lies with A.P. Moller Holding, a private investment company.
In terms of Faerch’s sustainability efforts, it opened a polyethylene terephthalate tray line at its Cirrec recycling plant in Duiven, the Netherlands, this April.
Earlier, in February 2024, the company launched the Tumbler range, designed with a minimum of 30% post-consumer recycled material, for the foodservice market.
