This document highlights the key points from the summary of the inaugural review of our sustainability performance, in connection to our USD 25 million sustainability-linked loan facility provided by Deutsche Bank. The loan finances the capex investments for our rubber plantations in Cameroon and Malaysia, and is uniquely structured such that it incentivises environmentally and socially sustainable economic activities.
The loan structure aligns its terms to relevant predetermined Sustainability Performance Targets (SPTs). An independent environmental and sustainability consulting firm, Environmental Resources Management (ERM) was appointed by Deutsche Bank to support the process of setting the SPTs, as well as reviewing the achievement of predetermined SPTs. Having determined ambitious sustainability KPIs and targets in July 2020, the progress of the KPIs and targets are assessed annually over the three-year transaction period. This report summarises ERM’s key findings on our sustainability performance in relation to the established targets at the end of the first assessment period.
To meet the targets, we have worked with several environmental and social consultants, and NGOs.
To view each of the KPIs set for the first assessment period, please view the Overview of the Sustainability Linked Loan Framework here.
Deutsche Bank has been closely working with Halcyon Agri and Environmental Resources Management (ERM) to review the progress made against the agreed KPIs during the first monitoring period (2022-2021) of the loan. We have valued an open and constructive dialogue amongst all parties during this process, and we have very much welcomed Halycon’s transparent approach in this process. While COVID disruption impacted some project timelines, overall the company made very good progress towards its KPIs during the first monitoring period. We will continue to stay closely engaged with Halycon and ERM on continued KPIs monitoring in 2022-2023.
– Viktoriya Brand, Head of Group Sustainability, Deutsche Bank
The agreed KPIs were an operational challenge for us which was made greater this year by Covid. Our success in hitting these KPIs is the result of the hard work of our teams, the constructive support of Deutsche Bank, and the committed engagement of stakeholders. I am pleased to see third parties validate our commitments to no deforestation and transparency which is important as we continue to drive our sustainable development. We look forward to year two.
– Lee Chestnutt, CEO, Corrie MacColl Plantations
ERM is a global consulting firm providing environmental, health, safety, risk consulting and sustainability related services. ERM has been appointed by Deutsche Bank as an independent consultant to support the annual review of Halcyon Agri’s performance against sustainability KPIs agreed under the loan contract (‘the Assignment’). The assignment covered the following tasks: i) review of the respective documentation submitted by Halcyon Agri, and ii) interviews with relevant Halcyon Agri employees to confirm how the performance metrics data are calculated and reported.
ERM has assisted Deutsche Bank in reviewing Halcyon Agri’s annual sustainability performance during the first assessment period of the loan. We would like to thank both Deutsche Bank and Halcyon Agri team for their time, cooperation and support in conducting the review. Although the Covid-19 pandemic has brought unprecedented challenges to some Halcyon Agri’s respective KPIs, the company generally has been able to show good progress towards its predefined sustainability performance targets in 2020-2021.
SPOTT and Ecovadis Scoring
Zero Deforestation Monitoring
Community / Stakeholder Engagement Programme
Development of an Integrated Pest Management Plan & Reduction of Chemical Pesticide Use per ha
Effluent Discharge Reduction