Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK) has executed a $4 billion sustainability-linked revolving credit facility (SLRCF).
“We’re always working to make our sustainability performance even stronger,” CEO Don Lindsay said in a media release. “This sustainability-linked facility more fully integrates our performance against our sustainability goals with our financing plan.”
Under the SL RCF the price paid by Teck will increase or decrease based on the company’s performance in reducing carbon emissions, improving health and safety, and strengthening gender diversity in its workforce.
The new credit facility matures in October 2026, extending the previous facility by two years, Teck said. The principal amount outstanding as of October 18 was $198 million as compared to $502 million as of June 30, 2021, and it is expected to be at zero by end of October 2021.
The SL RCF is aligned with Teck’s long-term sustainability strategy, which sets out goals including reducing carbon intensity by 33% by 2030 and becoming carbon neutral across operations by 2050.
Teck’s sustainability strategy is here.