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Beko Secures €100 Million Sustainability-Linked Loan

In a significant step towards sustainable innovation, Beko, one of the world’s leading home appliance manufacturers, has announced that it has successfully procured a €100 million sustainability-linked loan from the International Finance Corporation (IFC), which is part of the World Bank Group. This loan marks Beko's first venture into sustainability-linked financing and underlines the company's strong commitment to integrating environmentally conscious practices within its operations.

A Focus on Renewable Energy and Earthquake Resilience

The newly acquired financing is set to play a crucial role in furthering Beko's sustainability objectives by enhancing renewable energy capacity through the operation of two dedicated solar power plants. Additionally, this funding will bolster the company's infrastructure, specifically strengthening six production facilities to improve resilience against earthquake damage. This proactive approach not only prioritizes environmental sustainability but also ensures that the company's manufacturing processes can withstand natural calamities, which is particularly important in regions prone to seismic activity.

The financial agreement also aims to accelerate Beko's research and development initiatives, which will focus on creating smart, resource-efficient, and health-centric appliances. This is a vital step in driving eco-efficient innovation that aligns with global sustainability expectations and promotes a healthier living environment for consumers.

Sustainability Goals and Gender Diversity

Structured in accordance with Beko’s Sustainability-Linked Financing Framework, the five-year loan includes specific sustainability targets aimed at reducing greenhouse gas emissions and enhancing gender diversity within the workforce. These targets reflect IFC’s commitment to promoting inclusive and climate-resilient growth, showcasing Beko's alignment with broader global sustainability goals.

Barış Alparslan, Beko's Chief Financial Officer, expressed pride in achieving this milestone, stating, "The sustainability-linked loan with IFC marks yet another important milestone in our journey toward building a net-zero future. By investing in renewable energy, earthquake resilience, and R&D for smarter, more efficient products, we're strengthening our ability to meet global sustainability expectations while delivering value to our customers and communities worldwide." His sentiment underscores Beko's commitment to sustainability while continuing to meet the needs of its customers globally.

Economic Impact and Job Creation

In addition to advancing sustainability, Ashruf Megahed, IFC's Regional Industry Head for Manufacturing, Agribusiness and Services in the Middle East and Central Asia, emphasized the importance of building resilient infrastructure and advancing research and development (R&D) as vital to ensuring the competitiveness and sustainability of the region's manufacturing sector. He noted that working with leading companies like Beko can drive economic resilience and create jobs, which, in turn, generate significant positive effects for the wider economy.

Beko's Global Presence and Commitment to Sustainability

Beko operates internationally, with a presence in over 55 countries and a dedicated workforce of more than 50,000 employees. The company is recognized for its innovative approach to appliance manufacturing and has achieved numerous accolades for sustainability, including a top score in the SP Global Corporate Sustainability Assessment for seven consecutive years and a place in the Dow Jones Sustainability Indices for the eighth consecutive year.

Beko’s commitment to sustainability is more than just a business strategy; it is a core component of its identity. With 28 R&D and design centers worldwide housing over 2,300 researchers, the company holds more than 4,500 international registered patent applications.

Conclusion

As Beko embarks on this new chapter with its sustainability-linked loan from IFC, it reinforces its vision of 'Respecting the World, Respected Worldwide.' This financial collaboration is not only a testament to Beko's dedication to sustainability but also a pivotal move towards future innovation that respects the planet while creating value for consumers around the globe. Notably, the advancements in technology and commitment to sustainability will serve to enhance Beko's position as a leader in the global appliance market, ensuring they remain at the forefront of eco-friendly innovations in the years to come.