Source: Media Outreach
Sustainability targets encompass eco-friendly manufacturing practices and robust corporate sustainability transformation
Despite the challenging global environment, this SLL Facility of HK$504 million reflects strong confidence and support from the banking sector in GP Industries’ commitment and achievements in Environmental, Social and Governance (“ESG”) principles.
Victor Lo, Chairman of Gold Peak and GP Industries, said, “Gold Peak is deeply committed to long-term sustainable development and has a proven track record in this area. The establishment of this SLL Facility not only affirms our strategic direction but also enhances our ability to pursue innovative financing solutions and operational best practices that underpin sustainable business growth.”
“Our dedication to enhancing our environmental and social performance remains unwavering. We will actively work to mitigate climate risks and prioritize investments in medium- to long-term ESG initiatives that are designed to generate enduring value for our key stakeholders and shareholders. By integrating ESG principles as a fundamental driver of our corporate strategy, we are confident in our ability to make significant strides towards achieving net-zero emissions. These efforts will yield substantial benefits not only for our diverse stakeholder group but also for our communities and the planet as a whole,” added Victor Lo.
Michael Lam, Vice-Chairman and Executive Vice President of GP Industries, commented, “As a leading company in the batteries, audio, and electronics industries, GP Industries is committed to embedding sustainability principles across its operations. We have made significant progress in advancing our sustainability agenda, reflecting our commitment to responsible corporate citizenship and long-term value creation. Since 2017, we have regularly reported our ESG performance to stakeholders as part of our disciplined approach to transparency and long-term value creation. We actively advocate for the adoption of rechargeable batteries to minimize waste, and our GP Recyko rechargeable products have received positive market reception. We have also accelerated the packaging sustainability efforts by transitioning over 1,000 GP-branded consumer battery products to paper-based packaging across Europe. This initiative has led to an annual reduction of 48 tons of plastic and 30 tons of material waste per year, marking a significant milestone in the company’s long-term commitment to environmental stewardship.”
“For our acoustics portfolio, KEF GP Group (“KGG Group”), which comprises KEF, Celestion and GP Electronics, will continue to invest in green manufacturing facility. The SLL Facility underscores our commitment to environmental preservation while delivering exceptional sound quality to our customers.”
The last financial year represents a pivotal milestone for GP Industries as the company formally announced its science-based targets for reducing greenhouse gas (GHG) emissions, which encompass Scopes 1 and 2 operational emissions. Building on its ongoing de-carbonization roadmap, GP Industries has established interim and long-term reduction targets as follows:
- a 20% reduction by 2030 compared to the FY2024 baseline;
- a 60% reduction by 2040; and
- the achievement of net-zero operational emissions (i.e., 100% reduction) by 2050.
GP Industries is dedicated to advancing sustainable manufacturing practices. Among many sustainability awards, four of its battery manufacturing facilities have achieved Zero Waste to Landfill Platinum or Gold validation from UL Solutions, demonstrating its commitment to diverting 95-100% of waste from landfills through effective waste reduction and diversion strategies. Additionally, GP Batteries, the battery business of the company, has gained EcoVadis badge with assessment results exceeded industry standards, reflecting its strong performance in environmental stewardship, labor practices, human rights, ethics, and sustainable procurement. GP Industries aspires to lead the industry in sustainability initiatives and to continually enhance its contributions to a greener future.
Kelvin Au, General Manager and Head of Wholesale Banking Division at The Bank of East Asia, Limited, said, “GP Industries Limited is an internationally renowned manufacturing company with deep roots in the battery and audio businesses. It has built a formidable legacy spanning over six decades. GP Industries Limited now stands as a global leader in consumer batteries under its “GP” and “Pairdeer” brands, and as a trailblazer in high-end audio equipment under the premium brand “KEF”. BEA appreciates the company’s dynamism and pioneering spirit in driving transformation. As the sole mandated lead arranger and bookrunner for this sustainability-linked syndicated loan and GP Industries Limited’s main banking partner, BEA will leverage our global network and comprehensive financial expertise to deliver end-to-end solutions tailored to GP’s evolving business needs.”
The 3-year SLL Facility has a tiered incentive mechanism where GP Industries is entitled to an interest reduction when the SLL Facility sustainability targets are achieved. This SLL Facility was signed by GPI International Limited and GP Batteries International Limited, with the parent company, GP Industries, providing a corporate guarantee. GP Industries plans to deploy the proceeds from the SLL Facility to strengthen its financial position, support ongoing long-term investments in advanced manufacturing technologies, enhance operational efficiencies, and reinforce its commitment to sustainable business practices.
Photo captions:
https://drive.google.com/drive/folders/1vuYH-bQ-vG9JQxhe-gzr6IhT7fzNe02l?usp=sharing
- (Center left) Michael Lam, Vice-Chairman and Executive Vice-President of GP Industries, signed the SLL Facility of HK$504 million with 5 major banks.
- (Back row, 6 from left) Victor Lo, Chairman of both GP Industries and Gold Peak, expressed gratitude to the banks for their staunch support on the SLL Facility.
Hashtag: #GPIndustries
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– Published and distributed with permission of Media-Outreach.com.
