Last month, our team at Budweiser Brewing Company APAC announced the successful signing of a total USD500 million Sustainability-Linked Loan Revolving Credit Facilities ("Green Financing Loan") with a bank consortium led by Bank of China, one of the largest of this kind among publicly listed consumer goods companies in Asia Pacific.
The Green Financing Loan has a three-year term with a tiered discount on the loan's interest rate if Bud APAC achieves pre-determined ESG targets. These targets incentivize improvement in four key performance areas that contribute to Bud APAC's 2025 Sustainability Goals in climate action, water stewardship, circular packaging and smart agriculture.
"This loan further demonstrates our unwavering commitment to integrating sustainability into all aspects of our business. As a purpose-driven company, we are confident of our ability to capitalize on this opportunity and achieve the performance-based incentive regarding ESG targets. We look forward to making our communities greener and our people healthier as we work towards a sustainable future," said Jan Craps, Bud APAC's Chief Executive Officer and Co-chair of the Board.
Bud APAC's 2025 Sustainability Goals, which support the United Nations Sustainable Development Goals, deliver a clear strategy and measurable, positive impact on the environment and communities in Asia Pacific.
- Climate Action: Bud APAC announced in June 2021 that its Wuhan brewery would achieve carbon-neutrality by the end of 2021, the first among all Anheuser-Busch InBev breweries globally. Three breweries in China have already achieved RE 100 and 11 breweries have installed solar panels across Asia Pacific.
- Water Stewardship: With the creed of "No water, no beer!" Bud APAC has invested in water availability and quality improvement in communities with significant water stress, particularly in China and India, the world's top two most populated countries. In China, it initiated a Water Return Community program with approximately 17 million hectoliters of reclaimed water returned to communities from its operation in 2020. Bud APAC created more than 10 million hectoliters of cumulative water recharge in high-risk watersheds in India in 2020.
- Circular Packaging: Bud APAC continues to follow its Reduce, Reuse, Recycle and Rethink strategy. In South Korea, the company became the industry's first to use 100% recycled material for box packages.
- Smart Agriculture: Bud APAC confirmed that 92% of its direct farmers were skilled by the end of 2020, 100% were connected and 83% were financially empowered through digital solutions.
In line with its 2025 Sustainability Goals and its Dream-People-Culture principles, Bud APAC has a clear roadmap for social and corporate governance including best practices in D&I initiatives, corporate governance, compliance, and workplace well-being. The roadmap integrates sustainable development and actions for long-term value creation in Asia Pacific.
For more information, please refer to Bud APAC's latest environmental, social and corporate governance report here.