Aligning positive environmental and social impacts with economic outcomes has benefitted our business and demonstrates our commitment to keeping sustainability at the center of everything that we do.
In 2023, we added a five-year revolving credit facility, which includes pricing adjustments based on Xylem's achievement of certain sustainability related targets, in addition to its credit rating. These targets drive climate mitigation action across our value chain and include:
- Reducing Scope 1 and Scope 2 GHG emissions.
- Enabling customers to reduce their GHG emissions by using our products – an extension of our existing 2025 Customer Sustainability Goal.
- Increasing the percentage of suppliers reporting environmental data to EcoVadis or equivalent ratings – an extension of our existing 2025 Supplier Sustainability Goal.
These targets relate to legacy Xylem only and will be updated by the first quarter of 2025 to include legacy Evoqua. They undergo third-party limited assurance.
The 2023 credit facility builds on a long history of aligning our sustainability and financial strategies. Other examples include:
- Partnering with a women-led impact platform to invest a portion of our cash on hand in mission-driven banks and credit unions that facilitate investments in underserved communities.
- Opening an ESG-linked demand deposit account that ties yields on deposits to the achievement of our 2025 Sustainability Goals.
- Completing a $1 billion green bond offering, with proceeds allocated to projects to improve water accessibility, affordability, and resiliency.
- Migrating supply chain finance agreements to sustainable frameworks that offer benefits for participating suppliers that initiate and improve their EcoVadis (or equivalent) scores.
We expect to continue to apply a sustainability-based financing strategy that supports our mission to achieve meaningful environmental and social outcomes.
Second Party Opinion by Sustainalytics