BANGKOK — Thai Union Group, the world’s biggest canned tuna producer, has secured its first sustainability-linked loan of $400 million from a group of financial institutions, Nikkei Asia has leaned. If the company achieves set targets such as strengthening the traceability of its seafood, the interest rate will be lowered by the lenders.
Thai Union, which engages in the canned tuna, frozen seafood and other businesses, makes about 70% of its overall revenue in the U.S. and Europe, where awareness of environmental, social and corporate governance, or ESG, factors is strong among retailers and consumers.
That is why Thai Union has so far addressed challenges such as preventing the overexploitation of fishery resources and protecting workers’ human rights in the manufacturing process.
Borrowers of sustainability-linked loans can receive favorable interest-rate treatment, depending on how…
