Sustainability Linked FinancingSource: RNS
17 December 2021
Vistry Group PLC
Sustainability Linked Financing
Vistry Group PLC (the "Group") is issuing notice of the completion of its new Sustainability Linked Revolving Credit Facility on 16 December 2021.
As part of this financing, we are pleased to re-affirm our commitment to our sustainability strategy, with the interest payable on the facility being determined, in part, by our ability to meet three Sustainable Performance Targets (SPTs), details of which are set out below.
Meeting these targets will result in lower interest payments for the Group and to ensure we can both encourage and support our colleagues to engage further in the homes and communities in which they work and live, these interest savings will be put into a matching fund for charitable activities undertaken by our staff.
Greg Fitzgerald, Chief Executive said:
"As a major housebuilder we fully understand our responsibilities to the people who work with us, the natural environment, and the homes and communities we help create. Our targets address the shortage of skilled labour in the construction sector; the carbon emitted from our role as one of the UK's largest housebuilders; and the lack of high-quality affordable housing in the UK."
SPT1 - Our People. It is widely recognised that the construction industry faces significant labour shortages as a result of an ageing workforce and the loss of skilled labour from the job market. Vistry is committed to growing the number of skilled workers in the market through the operation of its skills academies. These nationwide academies are located on some of the Group's larger sites and, in conjunction with local colleges, provide training to a broad range of individuals who are new to the industry. Some graduates may go on to become direct Vistry employees with a much larger number expected to gain employment through Vistry's sub-contractor network and the wider market.
Our commitment: to put 550 learners through our skills academies by 2025 from today.
SPT2 - Our Operations. The environmental standards for what we build are determined by regulations such as the Future Homes Standard. Consequently, our target is to improve how we build our homes in the future, a target that also aligns with our commitment to achieve a 1.5'c target and one that will be consistent with our Science Based Targets initiative ("SBTi") targets once they are received in 2022.
Our commitment: to reduce scope 1 and scope 2 CO2 emissions by 4.2% for each year of the financing period.
SPT3 - Our Homes and Communities. The largest supply / demand gap in the housing sector is in the provision of high-quality affordable homes. At Vistry, we consider that the building of quality, affordable homes is the right thing to do for our communities. Our affordable homes targets are significantly in excess of the requirements of s.106 or other planning requirements, driven by our ethos, enhanced market absorption rates and our strong relationships with registered social housing providers.
Our commitment: to deliver a year-on-year increase in additional affordable homes beyond our planning compliance requirements.
In 2021 we will deliver around 850 additional affordable homes in excess of our planning compliance obligations.
Vistry Group PLC
Earl Sibley, Chief Financial Officer 01675 437160
Justin Griffiths, Nick Dibden, Victoria Heslop 020 7250 1446
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