Sustainability-linked Bond
IN NOVEMBER 2021, KÄHRS ISSUED A BOND LINKED TO THE GROUP’S SUSTAINABILITY WORK
The bond is linked to the outcome of three defined sustainability goals that are aligned with the group’s ambitious sustainability strategy, Kährs Planet Positive Journey.
Kährs' Sustainability Performance Targets (SPT):
The Governance Group carried out an independent review of the sustainability framework and awarded Kährs with A-rating.
- Reduce climate emissions from Scope 1 and Scope 2 by 40% by 2025
- Define Science-based CO2 emission reduction targets and achieve validation by SBTi by 2023
- Increase percentage of sustainably sourced wood to 87% by 2025
Verification of 2023 progress
Kährs' progress against the Sustainability-Linked Bond has recently undergone independent verification, confirming developments in reducing greenhouse gas emissions and towards the sustainability performance targets for the 2023 reporting period. Kährs is dedicated to leading the way in sustainability, and this verification reinforces the company's commitment to making a positive impact on the environment.
The Kährs Sustainability-Linked Bond is tied to the realization of three specific sustainability targets, which are integral to the group's ambitious and comprehensive sustainability strategy.
| Kährs Sustainability Performance Targets (SPT) | 2023 Status |
| Reduce climate emissions from Scope 1 and Scope 2 by 40% by 2025 | 77% reduction in 2023 (vs 2020 base year) |
| Define Science-based CO2 emission reduction targets and achieve validation by SBTi by 2023 | Targets defined and submitted to SBTi in 2023. Validation achieved in May 2024 |
| Increase percentage of sustainably sourced wood to 87% by 2025 | Sustainably sourced wood represents 80% of total wood purchases in 2023 |
Progress has been made towards achieving the sustainability performance targets (SPTs) set out by the sustainability-linked bond. Through accelerated efforts to reduce emissions within production processes, Kährs achieved a 77% reduction in Scope 1 and 2 emissions in 2023, surpassing planned progress and representing a solid step towards the goal of net-zero emissions.
Kährs is committed to further accelerating this transition, aiming for a 95% reduction in Scope 1 and 2 emissions by 2030 and achieving net-zero emissions across the entire value chain by 2040. In May 2024, these near-term and long-term targets were validated by the Science Based Targets Initiative (SBTi). The process to achieve SBTi validation took longer than expected, going through 5 query rounds following our submission in November 2023. The process encountered some delays due to the suspension of the timber and wood fibre pathways within the Forest, Land and Agriculture (FLAG) Science-Based Target-Setting Guidance. The SBTi validation of these ambitious science-based targets marks a crucial milestone in Kährs’ journey towards net-zero.
Despite facing geo-political challenges, Kährs continues to strive for an increased share of sustainably sourced wood. Although there was a decline in 2023, the company remains confident in achieving the commitment to sustainably source 87% of wood supplies by 2025.
