Lundbeck sustainability-linked loan drives global access to brain health
The Danish leader in pioneering treatments for brain diseases is harnessing sustainable finance to accelerate its social and environmental impact.
Lundbeck, the Danish global pharmaceutical company specialised in brain diseases, has integrated environmental and social targets into an existing €1.5 billion revolving credit facility (RCF). The four-year sustainability-linked loan (SLL), is a first for the company in its mission to restore global brain health and develop world class and life-changing therapies for patients living with brain diseases.
The interest rate on the revolving credit facility (RCF) is linked to Lundbeck meeting three sustainability KPIs, which will be externally assessed on an annual basis by an independent third party:
- KPI 1: Reduction of absolute Scope 1 and 2 greenhouse gas (GHG) emissions
- KPI 2: Increase in share of renewable electricity
- KPI 3: Increase in number of patients reached with donations in low- and middle-income countries
The structuring of the SLL, supported by BNP Paribas as sole sustainability coordinator, aligns with the guidelines set out by the Sustainability Linked Loan Principles, published by the Loan Market Association.
Lundbeck will earmark interest savings to new sustainability-related initiatives focused on access to brain health between 2022 and 2025. This will include action to address discriminatory, physical, economic and informational barriers to make safe and efficacious brain disease treatments more accessible, including in lower- and middle-income countries.
According to recent research, an estimated one billion people live with at least one mental health disorder. However general public awareness about brain health remains low, alongside challenges including pressure on healthcare systems, unequal access to medicine and stigmatisation, all of which was further brought to light by the Covid-19 pandemic.
For more than 70 years, Lundbeck has been at the forefront of neuroscience. The company has developed and commercialised some of the world’s most widely prescribed therapies for brain diseases. By harnessing sustainable finance to support its environmental and social targets, Lundbeck is actively supporting the UN sustainable development goals including SDG 3, Good Health and Wellbeing, SDG 13, Climate Action, and SDG 10, Reduced Inequalities.
“We believe that leadership includes demonstrating that we lead on bringing positive change to the world – towards the climate and to the society in which we operate. This sustainability-linked loan is further evidence of our commitment to ensuring that sustainability runs through everything we do,” says Deborah Dunsire, CEO and President of Lundbeck.
Ulrik Ross, CEO BNP Paribas Group Denmark, comments:
“Using new and innovative approaches to finance has an important role to play in driving development towards a sustainable and inclusive future. Through this sustainability-linked loan, Lundbeck is actively addressing both climate change and one of the most material sustainability issues in its industry: access to healthcare.”