Faurecia ESG and E-mobility

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

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 ID 53310

Status Disbursing

Location

Regional

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

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

Project ID 53310

Status Disbursing

Location

Regional

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

15 Dec 2021

Disclosure date

11 Jan 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project description

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

ition 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 & 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.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Faurecia ESG and E-mobility

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)