Polymetal's cost of borrowing to reduce as firm improves sustainability score

Polymetal has been classified as “a leader” in the diversified metals sector by independent environmental, social and governance (ESG) research and ratings firm Sustainalytics, the company announced on Tuesday.

The FTSE 250 firm ranked first among its 47 peers worldwide for its environmental and social policies and practices.

As a result of the improved score, Polymetal was now eligible for the highest discount to the interest rate on its $80m sustainability-linked loan with ING.

For 2018, Polymetal's overall ESG score improved 8% compared to the prior year's assessment to 85 out of 100.

That included a score of 86 out of 100 in governance, 85 out of 100 in environmental and 84 out of 100 in the social ranking.

“Sustainable development is central to Polymetal's strategy and culture,” said Polymetal’s chief sustainability officer Daria Goncharova.

“I am proud that our commitment to sustainability and strong ESG practices continue to be recognised by leading sustainability agencies.

“These initiatives not only create long-term value, but can also have an immediate financial impact by reducing our cost of funding.”

Sustainalytics is a leading independent ESG research and analysis firm, supporting investors around the world, Polymetal said.

Its ESG research covered more than 11,000 companies globally, and its ‘Controversies Research’ highlighted ESG risks across more than 15,000 firms.

In April, Polymetal committed to making further improvements to its ESG performance by partnering with ING on a sustainability-linked loan for a total amount of $80m.

Polymetal said it was “one of the first” in the global mining industry, and the first company in the Commonwealth of Independent States, to work together with ING to link its sustainability performance, as measured independently by Sustainalytics, to the interest rate on its loan.