Unlocking solutions to the world’s most critical challenges
With 40,000 professionals, across 60 countries, Wood is one of the world’s leading consulting and engineering companies operating across energy and the built environment.
Focusing on three mega-trends – energy transition, sustainable infrastructure and digital and technology – Wood provides consulting, projects and operations solutions. The Aberdeen-based company also has a strong track record in delivering solutions for a low carbon economy: so far, the group has supported over 685 wind projects, more than 1000 solar projects and has produced over 145 carbon capture studies across the globe.
At the same time, Wood is committed to becoming a sustainable company itself: by 2030, amongst other environmental, social and governance (ESG) objectives, the firm aims to reduce its carbon emission by 40%, achieve 40% female representation in senior leadership roles and double client support aligned to the energy transition and sustainable infrastructure.
Wood picks NatWest for first ESG FX agreement
Having recently agreed the first-ever green transition loan backed by UK Export Finance (UKEF), as well as a sustainable revolving credit facility (RCF) with a bank consortium including the Royal Bank of Scotland, NatWest Market’s Foreign Exchange (FX) team approached the Scottish company to discuss how it could also align its FX trading with its ESG targets.
Looking at the underlying KPIs for the UKEF backed loan and the sustainable RCF, the NatWest Markets and the Wood team agreed to apply the same key performance indicators (KPIs) – growing export revenue related to energy transition and sustainable infrastructure, and reductions in scope 1 and 2 carbon emissions – for the ESG FX agreement.
If these KPIs are met during the specified period, Wood will qualify for a sustainability-linked rebate correlated to the volume of FX trades booked with NatWest Markets during that time.
Contributing to a more sustainable economy
Andrew McLean, President, Tax and Treasury, Wood said: “Our sustainability plans have already taken a big leap forward as we continue to pursue our ambition of delivering a more sustainable future. We are delighted to further demonstrate our commitment with this new sustainability-linked FX agreement and appreciate NatWest Market’s support.”
Andy Kaufmann, Head of FX Structuring at NatWest, commented on the FX agreement: “We are delighted to have been able to help Wood on aligning their FX hedging programme with two key ESG KPIs, adopting the concept of ‘sustainability-linked’ to FX. This deal also showcases NatWest’s purpose in action: to help our customers achieve their ESG goals.”
Andrew Ashford, Corporate FX Sales, NatWest, added: “We are absolutely delighted to further support Wood on their sustainability journey with this innovative sustainability-linked FX agreement, which neatly complements ESG KPIs already agreed by Wood. This transaction is another example of our commitment to support companies on their sustainability journey.”
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