Green Financing
As part of our strategy, TIP Group is committed to securing more sustainable financing to support our capital expenditure programs and align with our for Generations to Come strategy with our overall financing structure. Central to this effort is our main credit facility, which is now linked to three key Environmental, Social, and Governance (ESG) performance indicators: the gender pay gap, number of refurbished trailers, and the number of units connected to TIP Insight. In 2021, we transformed our existing Revolving Credit Facility (RCF) into a Sustainability Linked Loan by tying the three ESG key performance indicators (KPIs) to the terms and conditions of the facility:
- The gender pay gap,
- Number of refurbished trailers and,
- The number of units connected to TIP Insight.
Building on this foundation, we have extended our credit facility to 2025 and introduced a new €75 million green financing revolving credit facility. This fund will specifically support investments in zero and low-emission vehicles, advancing our sustainability objectives. We are also exploring opportunities to include investments in retrofitting assets for improved fuel efficiency within the scope of this loan. Please read more here.
Our green financing initiative aligns with the Green Loan Principles outlined by the Loan Market Association (LMA) and the EU taxonomy of sustainable activities. Additionally, we're exploring various government and EU incentives, including programs like the Green Freight Program in Canada, to further support green projects and reduce fuel consumption and greenhouse gas emissions in our operations.