Product innovation triggers a virtuous circle in Lucart's process toward greater sustainability

LUCART PROMOTES PRODUCTION WITH A LOW ENVIRONMENTAL IMPACT
 

Founded in 1953 by the Pasquini family, Lucart S.p.A., known for the popular brands Tenderly, Tutto Pannocarta and Lucart Professional, is a multinational group that promotes a sustainable way of producing paper, through a systematic approach, aimed at optimising the use of raw materials and reducing waste, turning it into new resources.

The principle of sustainability is inherent in the DNA of Lucart, which is at the forefront of promoting low environmental impact production, so much so that it has initiated several major projects such as, for example, those aimed at reducing plastic in tissue product packaging or making paper from the recycling of Tetra Pak-type beverage cartons. Indeed, thanks to the EcoNatural project, Lucart has recovered more than 10.7 billion used beverage cartons since 2013, turning the fibrous part into hygiene paper products and the polyethylene and aluminium part into dispensers, pallets and other everyday objects.

Lucart has made strategic decisions increasingly aimed at development models, such as the circular economy and industrial symbiosis, able to create shared value while respecting the planet, and in 2019 it adopted a committee responsible for implementing the sustainability programme.

LUCART'S SUSTAINABLE DEVELOPMENT PLANS

When defining its investment and financing projects, Lucart Group has always considered non-financial evaluation criteria measuring environmental impact (Environmental), respect for social values (Social) and aspects of good management (Governance) as fundamental.

In order to be supported in its growth and development plans from an ESG perspective in addition to those concerning the circular economy, Lucart has relied on several occasions on Intesa Sanpaolo, its long-standing partner which, in recent years, has developed significant expertise in sustainability with dedicated teams of professionals.

The first Italian green loan in the tissue industry was signed at the end of 2021 with Intesa Sanpaolo and SACE's Green Guarantee, characterised by a pricing mechanism linked to the achievement of precise ESG targets.

In June 2022, Intesa Sanpaolo was part of the pool of banks that provided a EUR 101.4M loan to support and give continuity to investments in support of the circular Linked to the bilateral loan, in the same economy and implementation, in the production chain, of plant and machinery with greater year,  IntesaSanpaolo - IMI Corporate & Investment Banking Division finalised an innovative rate increase risk hedging contract to which the loan is indexed.

ESG-RELATED HEDGING OF RATE RISK

Linked to the bilateral loan, in the same year, Intesa Sanpaolo - IMI Corporate & Investment Banking Division finalised an innovative rate increase risk hedging contract to which the loan is indexed.

Generally, the most common rate hedging transactions involve a reduction, or an increase, in the fixed rate of the hedging instrument depending on whether or not predefined ESG goals are achieved by the company. In this case, on the other hand, the conditions of the derivative improve upon achievement of sustainability targets linked to the loan while, if the predefined ESG targets are not met, the company undertakes to make a donation to a non-profit organisation or association engaged in social and sustainable projects or initiatives.

This activates a virtuous circle: Lucart is incentivated to meet its sustainability goals in return for improved conditions for the derivative if predefined ESG goals are met, while undertaking to make a donation to a non-profit organisation if those same goals are not met.