German company GreenCycle receives funding from Intesa Sanpaolo Circular Economy Fund
The 62nd loan from the fund is linked to GreenCycle’s plastics recycling ambitions
Germany’s GreenCycle is the first business to be awarded financing from the €5 billion Intesa Sanpaolo Circular Economy Fund in 2020.
The German company, part of Schwarz Group, was born out of the recycling department of Lidl in 2009.
Today, it is a leader in materials recycling, particularly plastics, through its PreZero waste disposal brand. GreenCycle also markets the Heilbronn Half-Pallet, a lightweight pallet that helps reduce the environmental impact of moving goods around and now widely used by food retailers. Schwarz owns of the Lidl and Kaufland supermarkets.
The loan, the 62nd from the fund, is linked to GreenCycle’s plastics recycling ambitions. The transaction was led by the Frankfurt branch of Intesa Sanpaolo’s Corporate and Investment Banking (CIB) Division, with support from the Circular Economy Team of the Intesa Sanpaolo Innovation Center.
So far, the Intesa Sanpaolo Circular Economy Fund has provided €760 million of funding to SMEs developing circular economy practices. Projects eligible for Circular Economy financing from Intesa Sanpaolo must meet criteria that include product-life extension, renewable resources, resource optimisation, recyclable products and technologies that enable the circular model.
Intesa Sanpaolo is recognised as one of the most sustainable banks in the world, featuring in all the main sustainability indices. It received the RobecoSAM Bronze-class sustainability award in 2019 and was included in the RobecoSAM Sustainability Yearbook.
Additionally, Corporate Knights magazine named Intesa Sanpaolo among the 100 most sustainable companies in the world. Intesa Sanpaolo is also the sole Financial Services Global Partner of the Ellen MacArthur Foundation, the leading organisation for promotion of the circular model.
“The circular economy is a cultural transformation: supporting this model means a systemic reduction in the reliance on natural resources, which are by definition finite. This is why we want to support our business clients in the transition towards a successful model that is attracting increasing levels of financial resources,” says Carlo Messina, CEO, Intesa Sanpaolo Group.
He added: “At the European level alone, €320 billion in new investments in sustainability and innovation are expected in the coming years. Adopting the circular economy model enables our industrial system to drive new development, create new jobs and create more advanced technologies. In short, it offers significant growth opportunities that are more responsible as we move into the future.”