Sweco Secures €400M Sustainability-Linked Loan to Boost Green Goals

Sweco, one of the top European engineering and architecture consulting firms, has exchanged a €400 million revolving credit facility (RCF) for a sustainability-linked loan. The deal brings the company's capital nearer to its environmental and social goals.

Signed in December 2024, the new facility replaces Sweco's previous RCF and is to be used for common corporate needs and acquisitions. That aside, as opposed to conventional financing, the deal is accompanied by performance-based incentives that are contingent upon the company's sustainability performance.

The new building has a three-year tenor, extendable for a total of two one-year extensions at the lenders' discretion. Sweco signed the facility with its current banking group, Svenska Handelsbanken, Swedbank, and SEB. SEB also acted as sustainability coordinator for the deal.

Sweco's interest rate on loan will change in line with the company's performance compared with three environmental targets. The initial goal is to cut Scope 1 and 2 greenhouse gas emissions by 90% in 2030 compared to 2020 levels. The second goal is to cut Scope 3 emissions—purchased goods, mobility, and energy use emissions—by 30% by the same year. Both goals have been recognized by the Science-Based Targets initiative (SBTi) as aligning with climate science guidance.

The third objective is tackling social influence by way of a workforce diversity. Sweco aims to have 40% women within the company by 2040, in accordance with its overall ambition for gender equity in engineering and consultancy.

This financing approach not only supports climate goals but also connects business performance to impacts on sustainability. By aligning loan repayment with delivery in the key environmental and social performance indicators, Sweco is holding itself accountable while being rewarded by potential financial benefits if the targets are met.

Sweco's action tracks other companies adopting sustainability-linked finance structures. They are becoming more and more popular in all sectors and help companies embed environmental, social, and governance (ESG) values into their business and financial models. The shift comes on the back of investors and stakeholders putting pressure on companies to conduct business in a transparent and accountable way.

By linking its credit terms with development in sustainability, Sweco enhances its market position as a forward-thinking organization prepared to act on long-term social and environmental issues. The firm also enhances its status as a market leader in sustainable consulting and infrastructure through making its financial choices alignable with overall ESG objectives.

This action is a clear-cut dedication to the practice of ethical business to mobilize strengthened client, investor, and partner confidence. It also adds to the overall progress of sustainable finance as a robust model for building corporate responsibility.

Source:
First published by KnowESG, on reporting by News.cision.com (13 June 2025)