CSBP, part of Wesfarmers Chemicals, Energy and Fertilisers’ (WesCEF) portfolio of sustainable businesses, has signed up to an unprecedented sustainability-linked platinum metals lease offered by HSBC.
The rolling three-year lease has a KPI that was initially included in Wesfarmers’ inaugural sustainability linked bond last year, and requires CSBP to limit the average carbon emissions intensity of its manufacturing process.
CSBP uses the platinum in the manufacture of chemicals and will receive a discount on the lease if it meets the KPI. If it fails to meet the target, it will need to pay HSBC a financial penalty.
Sustainable finance is another important step for CSBP as part of its decarbonisation journey to address climate change and target net zero scope 1 and 2 emissions by 2050.