Project Description
A EUR 20m participation in an ESG-linked Schuldschein issuance by MANN+HUMMEL Holding GmbH, a leading global company in filtration technology. Under its two business units Transportation and Life Sciences & Environment, the Ludwigsburg-based Group (Germany) develops intelligent filtration and separation solutions that enable cleaner mobility, cleaner air, cleaner water, and cleaner industry.
Project Objectives
The project will support the resilience of the local subsidiary in Ukraine, as well as capital expenditure in Poland, the Czech Republic and Bosnia & Herzegovina for the production of electric vehicle components and for energy efficiency, in line with MANN+HUMMEL's 'Carbon Zero' climate protection strategy.
Transition Impact
ETI score: 61
Transition impact will stem from the following qualities:
Resilient: The Project will support the needs of the Ukrainian subsidiary, ensuring the sustainability of its operations in the current unstable environment.
Green: The Project includes capital expenditure for energy efficiency at multiple of MANN+HUMMEL's production plants.
Client Information
MANN AND HUMMEL HOLDING GMBH
MANN+HUMMEL is a leading global company in filtration technology. Under its two business units Transportation and Life Sciences & Environment, the Ludwigsburg-based Group (Germany) develops intelligent filtration and separation solutions that enable cleaner mobility, cleaner air, cleaner water, and cleaner industry.
EBRD Finance Summary
EUR 20,000,000.00
The project will support local subsidiaries in Ukraine, Poland, the Czech Republic and Bosnia & Herzegovina through financing working capital and capital expenditure.
Additionality
Financing Structure: EBRD offers a tenor, which is above the market average and is necessary to structure the project.
Innovative financing instrument: EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance (ESG) standards and/or climate and ESG risk considerations into the financing structure.
Environmental and Social Summary
Category B (2019 ESP). The environmental and social risks associated with the production of automotive and industrial filters are well known to the Bank and can be managed through the application of standard industry practice. Due diligence was carried out via review of publicly available documentation issued by the client in relation to sustainability and procedures related to the compliance and the implementation of corporate standards at the site level.
The assessment determined that the client has a sophisticated risk management system in place at all levels of operations and is therefore capable of implementing the Project in line with the Bank's PRs. Current operations are aligned with the PRs. A commitment to maintaining such standards is included in the agreements put in place between the Bank and the client.
The project is considered aligned with the Paris Agreement for climate mitigation as it operates in non-energy intensive industry considering nature manufacturing operations and the scope of use of proceeds. The project is deemed not significantly exposed to physical climate risks and is considered Paris aligned for climate adaptation.
The project is aligned with MANN+HUMMEL's 'Carbon Zero' climate protection strategy through which it aims to make its operations, including those in EBRD countries of operations, CO2-neutral by 2035. The contribution is based on energy efficiency measures to be addressed at plant level and production of substantial components for vehicles with alternative propulsion systems (e.g. battery electric and fuel cell) which is considered as enabling technology for decarbonisation of the automotive sector.
Technical Cooperation and Grant Financing
None
Company Contact Information
MANN+HUMMEL International GmbH & Co. KG
info@mann-hummel.com
+49 (7141) 98-0
+49 (7141) 98-2545
www.mann-hummel.com
Schwieberdinger Straße 126,
71636 Ludwigsburg,
Germany
PSD last updated
11 Jul 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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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.
