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The telecom sector is known as one of the largest consumers of energy and the credit facility is set to help address CO2 emissions throughout the chain.
Co-founder and Editor, The Tech Capital
August 12, 2021 | 9:34 AM BST
Dutch telecommunications operator KPN (AMS: KPN) has concluded a €1 billion (US$1.17 billion) credit facility, the interest of which is linked to the business’ sustainability performance in the coming years.
Earlier this year, Rotterdam-based KPN announced that it would further increase its sustainability programme to ‘Net zero’ emissions within the entire chain by 2040.
The interest on the credit facility is linked to KPN’s performance on three strategic sustainability objectives: the accelerated digitisation of the Netherlands through the roll-out of fibre optics, the reduction of KPN’s energy consumption and the reduction of CO2 emissions throughout the chain (Scope 3 emissions).
The new facility has a five-year term with two one-year renewal options. The credit facility replaces the existing facility from 2016 and is mainly used as a liquidity reserve.
Chris Figee, CFO of KPN, said: “This is an important financing agreement for KPN that brings financial flexibility and ensures that we maintain our solid liquidity position.
“Linking our sustainability performance to our financing structure underlines our commitment and fits KPN as one of the most sustainable telecom companies in the world.”
KPN has been greening its operations for nearly a decade, having run exclusively on green energy since 2011 and been climate neutral since 2015.
The company is aiming to be virtually circular by 2025. This means that KPN will continue to focus on reducing emissions from suppliers and customers in the use of their products and services.
KPN CFO Chris Figee explained: “Thanks to the digitisation of the network in the Netherlands, we as a society are able to achieve significant energy savings. In 2020, thanks to digital working, KPN customers together saved more than three times the energy needed to run KPN’s network.”
KPN’s energy consumption decreased by 37% in ten years, while the amount of data traffic increased by almost 21-fold over the same period, according to a company statement.
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