Hong Kong-listed jewellery retailer Luk Fook Holdings (International) has secured its first sustainability-linked loan amounting to HK$326 million (US$41.83 million) from DBS Bank (Hong Kong).
The loan includes revolving credit facilities with the interest rate linked to an agreed set of key performance indicators (KPIs) on sustainability.
Lukfook aims to reduce its energy consumption intensity and greenhouse gas emissions intensity through environment-friendly practices across its operations and production activities.
The company has also set goals on waste, energy use efficiency, and water efficiency within a three-year time frame, in line with the Hong Kong Special Administrative Region Government’s target of achieving carbon neutrality before 2050.
“Sustainability plays an important role in Lukfook’s daily operations. We strive to optimize our environmental, social and governance management systems, and strive to integrate ESG concepts into our corporate planning and operational decisions,” says Lukfook Group chairman and chief executive officer Wong Wai Sheung.
DBS says it has been supporting clients across different industries on their sustainability journey. In recent years, DBS Hong Kong has completed a number of sustainability-linked financings for various companies, including the Hongkong and Shanghai Hotels Group, Gammon Construction, Hong Kong Land, Xinyi Energy, and several others.