YARDLEY, Pa., Aug. 20, 2020 /PRNewswire/ -- Environmental, social and governance (ESG) ratings provider Sustainalytics has ranked Crown Holdings, Inc. (NYSE: CCK) (Crown) (www.crowncork.com) as the number one low-risk organization of the 48 reviewed companies operating in the metal and glass packaging sector. In the overall global containers and packaging industry, the Company holds the second position out of 80 companies assessed.
Sustainalytics' ESG Risk Ratings measure a company's exposure to industry-specific material ESG risks and how well a company is managing those risks. In relation to ESG issues management, which assesses internal efforts to minimize risk through sustainability policies, programs and practices, Crown nearly doubled its management score between December 2019 and June 2020. On a scale between 0 (weak management performance) and 100 (strong management performance), Crown received a 66.2, placing it in the top 1.4% of scores within Sustainalytics' research universe of more than 12,500 companies.
Following this improved score, the Company's interest rate for its $3.25 billion sustainability-linked credit facility decreased by the maximum amount allowed based on financing terms that are tied to Crown's management score with Sustainalytics. Announced in March 2020, the loan established Crown as the first packaging company in the Americas to secure sustainability-linked terms for its syndicated credit facilities and demonstrated the Company's commitment to accelerate its global sustainability initiatives. It also represented one of the largest sustainability-linked loans raised to date in the world.
For its performance against intrinsic industry risk, Crown received an ESG Risk Rating of 11.7 and is considered by Sustainalytics to be at low risk of experiencing material financial impacts from ESG factors. Categorization, which ranges from Negligible (0-10 points) to Severe (40+ points), is based on ESG performance in areas such as resource use, carbon emissions from operations, occupational health and safety, environmental and social impact of products and services and corporate governance. Crown's score, which improved by nearly eight points between 2019 and 2020 and represents the highest performance level within the organization's peer group, places the Company in the Low risk category, a segment reached by only 19% of global corporations.
"Crown is a great example of a company successfully leveraging its sustainability initiatives and ESG Risk Rating," said Ian Howard, Director of Sustainable Finance Solutions at Sustainalytics. "The Company's strong management of material ESG issues and corporate governance practices over the year resulted in a significantly improved ESG Risk Rating score and ultimately a lower interest rate for its sustainability-linked loan."
The ESG Risk Rating and management-specific score from Sustainalytics include an assessment of Crown's new Twentyby30 program, a robust initiative that outlines twenty measurable ESG goals to be completed by 2030, if not sooner. Built around five distinct pillars of action—Climate Action, Resource Efficiency, Optimum Circularity, Working Together and Never Compromise—the program addresses issues of urgent global concern and areas of the business in which Crown can create notable impact. The goals also align with the United Nations'Sustainable Development Goals (SDGs), allowing Crown's actions to contribute to a greater collective impact. All pillars are underpinned by the Company's well-established governance and ethics principles and practices.
More details about the Twentyby30 program and Crown's latest sustainability activities are available at www.crowncork.com/sustainability. Further insight into process and methodology for Sustainalytics' ESG risk ratings can be found at www.sustainalytics.com.
About Crown Holdings, Inc.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Yardley, Pennsylvania. For more information, visit www.crowncork.com.
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SOURCE Crown Holdings, Inc.