Brazil's BRF takes out $150 mln 'green loan' for use in the Middle East (updated)

BRF SA

21/12/2023 21:34

(Updates with subsequent statement from BRF clarifying the
loan's sustainability goals were defined now whereas the credit
line itself was actually approved in March)
    By Ana Mano
       SAO PAULO, Dec 21 (Reuters) - 
    Brazilian chicken and pork processor BRF SA  BRFS3.SA  has
announced the attachment of sustainability goals to a $150
million credit facility from the First Abu Dhabi Bank approved
in March, according to company's disclosures on Thursday.
    The company said this is its first green loan for use in the
Middle East and North Africa, as the credit line will help BRF
expand its business in the region.  
    Sustainability or green loans are credit facilities
structured to support sustainable business activities from a
social and environmental viewpoint.
    "At BRF, we defined the criteria for reducing scope 1 and 2
emissions, and for increasing clean energy consumption as a
performance indicator linked to the loan," Bruno Massera,
financial director of international markets at BRF, said in a
statement. "These are relevant goals for BRF and are aligned
with the challenge of putting into practice the fight against
climate change discussed during COP28."
    In 2021, BRF announced a commitment to the Science-Based
Target Initiative (SBTI) and has been working since to reduce
greenhouse gas (GHG) emissions across its supply chain,
according to the statement.
    In 2022, BRF achieved "a 26% reduction in absolute
greenhouse gas emissions as defined in scopes 1 and 2," the
statement said.
    Scope 1 emissions are direct GHG emissions from
company-owned and controlled assets while Scope 2 emissions are
indirect ones from purchased energy including electricity,
steam, heat, or cooling.
    Scope 3 emissions, in turn, includes all other indirect
emissions that occur in a company's value chain.

 (Reporting by Ana Mano; editing by Diane Craft)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
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