Thai Union inks $328 million sustainability-linked financing package

The group will expand its success in sustainable fisheries to responsible aquaculture to set new standards and practices for the aquaculture industry globally.

December 1, 2023

Thai Union Group closed a THB 11.485 billion (USD 328 million) sustainability-linked financing package (SLL). This new SLL marks the commencement of the second phase of Thai Union’s Blue Finance agenda, with a target of increasing sustainability-linked finance to 75% of their long-term financing by 2025. Between 2020-2022, Thai Union completed its first phase of Blue Finance – financing that has sustainability targets to benefit the oceans – by successfully increasing its long-term sustainability-linked financing to 50%.

A group of leading banks, HSBC, Bank of Ayudhya PCL, MUFG Bank, Ltd, Mizuho Bank, and Sumitomo Mitsui Banking Corporation have jointly underpinned the new financing.

In alignment with Thai Union’s sustainability ambition under SeaChange® 2030, Key Performance Indicators (KPIs) and Sustainable Performance Targets (SPTs) focus on the company’s overall ESG performance, including maintaining consistently high rankings in the Dow Jones Sustainability Indices (DJSI) Food Products Industry Index. The sustainability-linked financing framework leverages the verified Science-Based Targets initiative (SBTi)’s ambitious Scope 1, 2 and 3 greenhouse gas emissions targets which align with Net Zero by 2050. Thai Union is the first global seafood company to set short-term and long-term goals verified by SBTi, accelerating meaningful progress in the industry. In addition, the framework includes the expansion of Thai Union’s success in sustainable fisheries to responsible aquaculture through certifications and Aquaculture Improvement Projects (AIP) to set new standards and practices for the aquaculture industry globally.

Thiraphong Chansiri, CEO of Thai Union, said that “Thai Union is pleased to receive strong support from their leading relationship banks. At Thai Union, sustainability resides at the very core of our business. Since the introduction of SeaChange® in 2016, we've seamlessly woven this sustainability strategy into our entire global operations. SeaChange® played a pivotal role in instigating the launch of the first phase of our blue financing program three years ago. Now, with SeaChange® 2030, we've set more ambitious goals encompassing both people and the planet. Our 2030 objectives serve as key performance indicators for the new SLL, underscoring our steadfast commitment to sustainability. This unequivocally demonstrates how our dedication will fortify Thai Union's position as a leader in the capital market.”