Following the publication of its Sustainable Finance Framework in February, Orbit has confirmed it has agreed a new £100m credit facility with bank ABN AMRO.
The facility is Orbit’s first sustainability-linked loan (SLL) where the margin is linked to Orbit achieving certain sustainability Key Performance Indicators (KPI).
The first KPI measures Orbit’s reduction in direct greenhouse gas emissions from owned or controlled sources (scope 1 emissions) and indirect greenhouse gas emissions from energy purchased for use in Orbit’s own operations (scope 2 emissions).
The second KPI measures the social value that Orbit creates through its various social programmes, such as that delivered by its Thriving Communities team, Tenancy Sustainment and Services team, its Independent Living team, and its supply chain.
The social value will be calculated using the HACT and national TOMs (Themes, Outcomes, and Measures) methodology.
Orbit was an early adopter of the Sustainability Reporting Standard (SRS) for social housing and published its first ESG report in 2021.
It established its Net Zero Carbon Roadmap in 2021, and in 2022 launched its Biodiversity Approach, which aligns with the framework of the UN Convention on Biology Diversity.
Last year, Orbit also achieved ISO14001:2015 certification for its environmental management system by the British Standards Institute (BSI), and announced that it had reduced its operational carbon by 33% since it established a baseline in 2018.
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Jonathan Wallbank, interim group chief executive at Orbit, said: “We are delighted to have agreed this new facility with ABN AMRO, which is also our first sustainability-linked facility.
“Orbit is firmly committed to enhance the sustainability of its operations and communities, and ABN AMRO are an ideal partner to support us to achieve these objectives by granting sustainability-linked financing.
“The facility will enable us to continue building much-needed affordable homes and provide safe homes for our customers, whilst delivering social value for our communities.”
Rutilio Merien, head of UK Coverage Real Estate at ABN AMRO, said: “We are delighted to support Orbit with its inaugural SLL and to extend our support to the UK social housing sector.
“Orbit’s strong credit and regulatory ratings, coupled with its sustainability ambitions make it a perfect fit for ABN AMRO as we look to further expand in the UK and deliver on our own ESG strategy.”
Orbit manages more than 45,000 affordable and social rent homes largely throughout the Midlands and the east and south of England.
Image: Stock-Asso/Shutterstock
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