Treasury Wine Estates (TWE) is transitioning $1.4 billion of its existing debt facilities into sustainability linked loans (SLL) through refinancing. The move incentivises change towards its sustainability targets. 

TWE chief sustainability and external affairs officer Kirsten Gray said the company recognises sustainability as a part of its responsibilities and as a key to its long-term success. 

The SLL allows the wine giant to improve accountability towards reaching its targets and establishes a direct correlation between the company’s sustainability performance and its cost of capital. 

“This approach is embedded in our strategy and the establishment of the sustainability linked loans is another important step towards integrating our sustainability agenda across the business,” Gray said. 

TWE has set targets to achieve 100 per cent renewable electricity by 2024, reduce greenhouse gas emissions and conduct a comprehensive review of its water usage and footprint at a catchment level. 

The company has already made significant progress towards reaching 100 per cent renewable energy across its global operations.

In September 2021, TWE was one of the first wineries to join 323 companies from around the world to join the RE100 initiative, a mission led by the non-profit organisations Climate Group and CDP, aiming to bring together international companies to build a green economy. By joining the initiative, TWE wines including Penfolds; Wolf Blass; Pepperjack; Wynns; and Squealing Pig will be made using 100 per cent renewable energy by 2024. 

“Integrating our sustainability performance with our financing framework is a really important step for both our sustainability and capital market journeys,” said TWE CFO Matt Young.

The winery also reached a 96.7 per cent recycling rate in FY21 and focused on promoting a circular economy. Significant investments to upgrade its Barossa Winery wastewater treatment plant and packaging were also made. The upgrade allowed for up to 360 megalitres of recycled water for the use of irrigation and the local community.

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