Port of Melbourne (PoM) has recently completed a $475 million sustainability linked loan (SLL).
The loan, financed by a syndicate of 10 banks, links to two sustainability indicators covering scope 1 and 2 emissions reduction, and a mental health first aid workplace certification together with an overarching gateway target tied to engagement with port stakeholders to facilitate scope 3 emissions reduction.
Chief Executive Officer Saul Cannon said the deal reflected PoM’s goal of working with stakeholders to build a sustainable port for the benefit of the Victorian economy and liveability of Melbourne.
“As Australia’s largest general cargo and container port, we are committed to facilitating the decarbonisation of the port’s supply chain, minimising the port’s impact on our land, air and waters and building strong stakeholder relationships,” Mr Cannon said.
“Linking an element of our financing structure to sustainability embeds our people, our environment and our stakeholders into what we do now and in the future.”
Port of Melbourne recently announced a target to achieve net zero scope 1 and 2 emissions by 2030, through the sourcing 100% of electricity from renewables, and the electrification of its vehicle fleet and marine survey vessel.
Along with a new commitment to mental health first aid training and certification, achieving this net zero ambition is a key plank of the new SLL.
“In addition, we’ve committed to engaging with our tenants, shipping lines and other port users on emissions reduction measurement and opportunities,” Mr Cannon said.
PoM is already progressing various initiatives to potentially reduce scope 3 emissions, recently signing a Memorandum of Understanding (MoU) with industry to explore the commercial feasibility of establishing a green methanol bunkering hub.
Australia and New Zealand Banking Group Limited and BNP Paribas acted as Mandated Lead Arrangers & Bookrunners and Sustainability Coordinators on the transaction.
PoM’s ongoing sustainability efforts have been recognised by the Global Real Estate Sustainability Benchmark (GRESB). PoM achieved a 5 Star rating in the 2022 GRESB Infrastructure Asset Assessment and was recognised as the most improved in the ports sector.