Owens-Illinois (O-I) has announced the issuing of €500 million worth of ‘Green Bonds’ to investors, to support its commitments to sustainability through its global manufacturing operations and glass packaging.
This is the first green bond that the company has issued, and O-I claims that it is the first company in the packaging industry to take this action.
According to O-I, the bond received ‘overwhelming’ support, which led to the up sizing of the offering from €300m to €500m.
O-I outlined its sustainability goals that the bond will fund in a Green Bond Framework, which includes supporting research and development and replacing fossil fuel energy with renewable energy such as wind and solar.
Proceeds from the bond will also be used to fund projects aimed at using circular economy programmes, including waste collection and glass recycling processing facilities.
With the money, O-I will support projects that intend to decrease the use of raw material and will instead encourage using sustainable raw material to produce environmentally friendly products.
The company intends to invest in energy effect solutions, such as LED lighting, as well as new technologies which will reduce water consumption in the manufacturing process.
Finally, the company claims that the funding will also enhance its efforts to make its supply chain more sustainable, increasing its ability to fund projects that improve energy efficiency, allow it to replace fossil fuel-powered cars with electric vehicles and train farmers on ways to improve soil health.
“Glass is a highly attractive package for the new green economy given its clear sustainability attributes – it is pure, healthy and infinitely recyclable. Glass is good for you and good for the planet,” said Andres Lopez, CEO of O-I.
Lopez added: “Sustainability is woven into everything we do, and the Green Bond formalises our intentions to positively impact our products, operations and financials. We believe this commitment will gain investors’ confidence in our company and our product.”
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