By Ana Mano
SAO PAULO (Reuters) – Brazilian chicken and pork processor BRF SA received a $150 million “sustainability loan” from the First Abu Dhabi Bank, according to a statement on Thursday.
The company said this is its first green loan for use in the Middle East and North Africa, as the credit line will help BRF expand its business in the region.
Sustainability or green loans are credit facilities structured to support sustainable business activities from a social and environmental viewpoint.
“At BRF, we defined the criteria for reducing scope 1 and 2 emissions, and for increasing clean energy consumption as a performance indicator linked to the loan,” Bruno Massera, financial director of international markets at BRF, said in a statement. “These are relevant goals for BRF and are aligned with the challenge of putting into practice the fight against climate change discussed during COP28.”
In 2021, BRF announced a commitment to the Science-Based Target Initiative (SBTI) and has been working since to reduce greenhouse gas (GHG) emissions across its supply chain, according to the statement.
In 2022, BRF achieved “a 26% reduction in absolute greenhouse gas emissions as defined in scopes 1 and 2,” the statement said.
Scope 1 emissions are direct GHG emissions from company-owned and controlled assets while Scope 2 emissions are indirect ones from purchased energy including electricity, steam, heat, or cooling.
Scope 3 emissions, in turn, includes all other indirect emissions that occur in a company’s value chain.
(Reporting by Ana Mano)
