Energy Efficiency, Finance, Sourcing Renewables - November 9, 2021
Colgate-Palmolive Issues First Sustainability Bond
Colgate-Palmolive Company announced that it has priced a EUR 500 million eight-year sustainability bond with an interest coupon of 0.300% per year. The proceeds of Colgate’s first sustainability bond will support the actions reflected in the New York-based consumer products company’s 2025 sustainability and social impact strategy that includes preserving the environment.
“Issuing Colgate’s first sustainability bond will help Colgate deliver our ambitious sustainability targets, which are vital to achieving our purpose to reimagine a healthier future for all people, their pets, and our planet,” said Stan Sutula, Colgate’s Chief Financial Officer in a statement. “Because collaboration and engagement are key to scaling the progress we all seek, deploying this financial instrument allows the investment community to participate in and contribute to our efforts.”
Colgate said it achieved measurable progress toward its sustainability goals, such as decreasing emissions, reducing manufacturing waste, eliminating plastic waste, conserving water, and helping improve oral health.
Colgate will allocate the net proceeds of the sustainability bond (or an equivalent amount) to finance or refinance, in part or in full, new and existing projects and programs with distinct environmental or social benefits as more fully described in its Sustainable Financing Framework on Colgate's website.
The eligible projects and programs are expected to be financed by Colgate through capital or operating expenditures and include assets, investments, and other related and supporting expenditures, such as R&D, which contribute to Colgate’s 2025 Sustainability and Social Impact Strategy and fall within any of the following categories:
- Actions that improve energy efficiency across Colgate’s manufacturing and non-manufacturing operations;
- Expenditures in renewable energy generation and procurement to support our Net Zero Carbon and 100% renewable electricity targets;
- Eco-efficient or circular economy adapted products, production technologies, and processes that drive sustainable sourcing and support the design of sustainable products, such as Colgate’s first-of-its-kind recyclable toothpaste tube;
- At Colgate-Palmolive, a coalescence of climate, energy goals helps drive efficiency achievements
- Colgate-Palmolive surpasses GHG reduction goal
- Colgate-Palmolive sees 350K MWh drop in energy use
- Colgate-Palmolive cuts emissions and increases RE by a third
- Colgate-Palmolive eyes net zero by 2040, 100% RE by 2030