Denmark. Faerch Group Holding A/S

The sustainability-linked loan has been provided to support Faerch Group Holding A/S in achieving its circularity targets in the plastics industry.

The sustainability linked loan from NIB will include two key performance indicators (KPIs), with targets linked to avoided CO₂e emissions and recycling yield, a measure of the efficiency of the sorting process.

KPI 1: Volume of recycled PET (polyethylene terephthalate, a form of polyester used to package beverages, food, etc.) output material derived from Faerch’s recycling operations and the corresponding avoided CO₂e emissions.

KPI 2: Recycled PET yield calculated as the share of recycled PET material in proportion to the total feedstock of sorted post-consumer waste.”

Founded in 1969 in Holstebro, Denmark, Faerch Group Holding A/S is a global leader in rigid food packaging and the world’s first integrated food packaging recycler. With over 50 years of experience in manufacturing and developing thermoformed food packaging, the company is committed to driving innovation and leading the industry in circular packaging and recycling solutions. Serving more than 4,600 customers worldwide, Faerch operates more than 25 production sites and employs around 5,500 people across Europe and the US. Faerch is owned by A.P. Moller Holding.

Productivity
Faerch’s sustainability-linked loan targets are directly tied to expanding its food-grade rPET recycling capacity. This expansion involves scaling up technology piloted in the Netherlands and developing collection systems across various regions.

Successfully entering new tray markets with rPET will enhance Faerch’s product offerings by replacing virgin PET in manufacturing food-grade trays. While the Dutch facility demonstrates efficient sorting technology, scaling up requires effective collection systems to maintain high yields.

Environment
Each kilo of rPET produced corresponds to substantial amounts of CO2 avoided. The yield measurement indicates the efficiency of the process in properly handling and sorting received waste. When the entire investment programme is implemented, annual CO₂ avoidance will amount to more than 300,000 tonnes.

NIB will follow up on the two selected KPIs with the client annually and require verification prior to margin adjustment.

Faerch’s greenhouse gas emissions reduction targets have been validated by the Science Based Targets initiative (SBTi) and are committed to the 1.5°C pathway from the Paris Agreement Faerch aims to reduce its greenhouse gas emissions by 50% from a 2022 baseline by 2030, ultimately achieving net-zero emissions across its entire business by 2040.