Commercial, Energy Efficiency, Finance - October 7, 2021
General Mills Issues First Sustainability Bond
General Mills announced Oct. 6 its inaugural sustainability bond, priced at $500 million over ten years.
The proceeds from the bond will fund energy efficiency projects at its plants, shift the company’s electricity use to renewable sources and increase innovation around other energy initiatives. These projects will assist General Mills in its pursuit of a 30% reduction in absolute greenhouse gas emissions across its value chain by 2030.
The company will also link the coupon of the bond to the accomplishment of its emissions goals by increasing the interest owed to bond investors if Scope 1 and 2 emissions targets are not met by 2025.
General Mills structured its bond in alignment with the International Capital Market Association and plans to release annually its performance and emissions data.
“Climate change and its effects are having an impact on our planet, people’s lives and on General Mills’ ability to live out our purpose of making food the world loves,” Kofi Bruce, chief financial officer at General Mills, said in a statement. “General Mills is focused on reducing emissions across our value chain, and we are making strategic financial investments connected to our sustainability goals to further advance and support this important work.”