National Westminster Bank and Crédit Industriel et Commercial are the other participants in the sustainability-linked facility.
The business will receive a margin adjustment on its funding, which is structured in line with the Loan Market Association’s Sustainability Linked Loan Principles, for achieving a set of sustainability targets. These relate to the business’s reduction of greenhouse gas emissions, increasing the amount it spends with small businesses and voluntary, community and social enterprises within its supply chain, and improving gender diversity and inclusion within its workforce.
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These targets are all core to Costain Group’s strategy and Climate Change Action Plan, which includes a commitment for net zero operational emissions, including within its supply chain, by 2035. The business has also committed its 3,000-strong car fleet to being electric or hydrogen fueled by 2030. Costain’s recently completed work on a major new road scheme in Preston (pictured) saved more than 6000 tonnes of CO2 via initiatives such as keeping the removed material on site and reusing it for landscaping around the new roads.
Since 2014, Costain Group has operated a supply chain academy, delivering over £800,000 of social value to hundreds of small businesses and nearly 8000 people. The academy provides free training to help small businesses meet the minimum criteria to successfully tender for business opportunities with Costain, and to navigate a complicated contractual landscape.
Clive Marks, Group Treasurer at Costain Group, said: "We're committed to creating a more sustainable and inclusive sector and we are pleased to have the support of HSBC and Lloyds Bank as we do this. As one of the leading companies in our industry, it’s important that we take a prominent role in tackling key issues around ESG and we look forward to meeting our ambitious targets."
