Sonae Arauco has signed a EUR 200 million sustainability loan. For this financing, sustainability performance targets (SPTs) were set until 2029, which provide for an increase in the proportion of recycled wood by 9.3 percentage points and a reduction in carbon dioxide emissions by 59% (Scopes 1 and 2), to which Sonae Arauco has committed.

Sustainability loans are loans whose conditions are directly linked to performance in the areas of environmental, social and corporate governance (ESG). The financing conditions are adjusted based on the fulfillment of the contractually defined sustainability targets.

The sustainable financing now announced underlines Sonae Arauco’s commitment to the transition to a low-carbon economy. “The KPIs defined in the agreement reflect concrete and measurable sustainability targets and are in line with the company’s vision to promote the circular economy and the efficient management of natural resources, especially wood,” explains Cristian Knollseisen, Chief Financial Officer of Sonae Arauco. “This positioning reinforces the integration of environmental objectives as an essential pillar of Sonae Arauco’s business model and a transversal element of all activities, including financial management.”

CaixaBank acted as sustainability coordinator for the financing and the key performance indicators and targets in the area of sustainability were assessed by DNV in accordance with the Sustainability Linked Loan Principles.

In 2024, Sonae Arauco used around 32 percent recycled wood in its production, and in some product lines the proportion of recycled wood is already over 70 percent. The figure is the result of the company’s concerted efforts to address this strategic issue through the development of new technologies and the continuous improvement of industrial processes. Added to this is the increase in the capacity to receive waste wood on the market through its recycling centers.

As part of its commitment to reducing CO2 emissions, Sonae Arauco is implementing a plan to decarbonize its operations based on the use of renewable energy, energy efficiency programs and the electrification of its fleet. In the long term, the manufacturer is aiming for carbon neutrality by 2040 (Scope 1 and 2) and is also working on decarbonizing its logistics and purchased raw materials to reduce Scope 3 emissions. As wood is a material that stores CO2, Sonae Arauco’s products also retain an average of 3 million tons of CO2 per year.