Project Description
The participation of up to €80 million in a six-year tranche of a leading automotive technology company Faurecia S.E.'s environmental, social and governance - ESG linked Schuldschein issuance, a privately placed unsecured debt governed by the German law, to finance Faurecia investments in Morocco, Poland, Romania and Tunisia.
Project Objectives
The project will contribute to the decarbonisation of the automotive supply chain and Faurecia's objective to achieve climate targets formulated in line with the Science-Based Targets Initiative, to become CO2 neutral for its internal emissions across all of its sites by 2025 (Scopes 1&2). The project will also finance growth capex in Faurecia's manufacturing sites in Romania, Morocco and Tunisia.
Transition Impact
ETI score: 64
The transition impact is derived from the Green and Inclusive qualities. Under the Green quality, the Project will support Faurecia's decarbonisation targets in Poland and Romania. Under the Inclusive quality, Faurecia will enhance access to digital skills and skills for automation for its workforce in Morocco to address an emerging skills demand for technologically sophisticated, more highly automated production lines.
Client Information
FAURECIA SA
Faurecia, headquartered in France, is a global automotive Tier-1 supplier listed on Euronext Paris stock exchange.
EBRD Finance Summary
EUR 80,000,000.00
The proceeds of the Bank's financing will be used exclusively to support Faurecia's 2022-2026 investments in Morocco, Poland, Romania and Tunisia. These include R&D for electric vehicles and renewable energy generation through power purchase agreements (PPAs) in Poland and Romania, eligible under the Bank's Green Economy Transition (GET) approach. The proceeds of the Bank's tranche will also finance growth capex in Faurecia's manufacturing sites in Romania, Morocco and Tunisia.
Total Project Cost
EUR 80,000,000.00
Additionality
The EBRD's participation allows the company to accelerate its decarbonisation programme in the Bank's countries of operation. In addition to that, part of the Bank's financing will be directed towards Foreign Direct Investment (FDI) to support investments in SEMED countries (Morocco and Tunisia) where transition gaps are higher.
Environmental and Social Summary
Category B (2019 ESP) and Low Medium Risk.
This capital markets transaction is with a client well known to the Bank. Previous due diligence has shown that the Company has EHSS risk management systems and procedures at the corporate and operational level which are aligned with the Bank's Performance Requirements. Due diligence on this transaction involved a review of information supplied by the client, in particular a breakdown of the proposed use of proceeds. In addition, publicly available information on EHSS issues was reviewed including the client's 2020 Integrated Report and 2021 Sustainability Guide. At the corporate level, the Company continues to maintain appropriate risk management objectives and procedures. Previous due diligence has shown that the corporate level procedures are implemented at the country and site level and that the company monitors EHSS performance at an appropriate level of detail and that the corporate standards apply to employees, contractors and supply chains as appropriate. The client has confirmed on previous projects that use of the Bank's proceeds would occur in compliance with the PRs and a similar commitment is being sought in this case. Review of the client operations, and the proposed project, has shown that the project is Paris Aligned in relation to adaptation.
Company Contact Information
Selim Hadj-Smail, Faurecia VP Group Financing & Treasury
Selim.hadj-smail@faurecia.com
+33 (0)6 24 44 42 95
www.faurecia.com
Faurecia S.E.,
23-27 avenue des Champs Pierreux,
92000 Nanterre, France
PSD last updated
11 Jan 2022
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
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General enquiries
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
