Spark establishes inaugural Sustainability-Linked Loans

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


MARKET RELEASE
30 November 2021

Spark establishes inaugural Sustainability-Linked
Loans
Spark Finance Limited, the wholly owned subsidiary of Spark New Zealand Limited
that carries out the borrowing activities for the Spark group (“Spark”), announced
today that in refinancing three existing loans, it has established three Sustainability-
Linked Loans totalling $NZ425 million.

Stefan Knight, Spark Finance Director, says: “When we launched our three-year
strategy in 2020, sustainability was identified as one of four strategic pillars. We are
focussed on supporting Aotearoa’s transition to a high-productivity, low-carbon
economy; improving our own sustainability practices – particularly our
environmental performance; championing digital equity; and continuing to build a
diverse and inclusive culture.

“We have made progress over the past year in all these areas. Spark was the first
digital services company in New Zealand to set a Science-Based Emissions Reduction
Target (SBTi), verified by the Science-Based Targets initiative (SBTi), to ensure we
are supporting global efforts to keep warming below 1.5 degrees.

“Through our SBTi, we have committed to reduce our absolute Scope 1 and 2
greenhouse gas (GHG) emissions by 56% by FY30, and we will focus on our supply
chain to ensure that at least 70% of our suppliers by spend also have science-
based targets in place by FY26. We have also assessed and reported climate change
risks and opportunities across our operations, aligned to the Task Force on Climate-
Related Financial Disclosures guidelines.

“Spark is committed to developing a culture that has diversity and inclusion at its
heart. Our Board and Leadership Squad have achieved our target of 40:40:20, and
across the broader business we are moving towards that target – with women now
making up 35% of our workforce.

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


“By linking our financing to further progress in these areas, we hope to demonstrate
our conviction and hold ourselves accountable to our investors and stakeholders
more broadly.”

The committed revolving Sustainability-Linked Loan facilities are with three lenders –
Westpac NZ (Westpac) who acted as sole Sustainability Structuring Co-ordinator and
Sustainable Finance Lenders, Commonwealth Bank of Australia, and MUFG Bank. The
facilities will be used for general corporate purposes, with Spark receiving a lower
interest rate if it achieves its sustainability targets and a higher interest rate on the
loan if it falls short.

Westpac NZ Head of Sustainable Finance Joanna Silver says “We congratulate Spark
on affirming its commitment to its 1.5-degrees science-based emissions reduction
target and engaging its suppliers on this journey also. Spark is a strong voice on the
need for gender equality in business. Westpac NZ is thrilled to be able to work
together with the Spark team to put in place annual targets to support Spark on its
sustainability journey.”

Details of Spark’s Sustainability-Linked Loans:
Sustainability
Ambition
Detail
Target 1: Reduce
absolute Scope 1 and
2 GHG emissions
Spark commits to reducing absolute Scope 1 and Scope
2 Greenhouse Gas emissions by 56% by FY30, from a
FY20 baseline.

Target 1 is informed by this FY30 commitment and
Spark taking action to make progress against it.
Target 2: Suppliers
establishing science-
based emissions
reduction targets
(Scope 3)
Spark commits that 70% of its suppliers by spend
covering purchased goods and services and capital
goods will have science-based targets by FY26.

Target 2 is informed by this FY26 commitment and
Spark making progress against it.
Target 3:
Championing
Diversity & Inclusion
Spark continues to promote equality in gender
representation as it strives to achieve its target of
40:40:20 gender representation.

Target 3 is informed by this commitment and Spark
making progress against it.

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand



• Westpac NZ has been appointed by Spark as sole Sustainability Structuring Co-
ordinator and is providing a $200m Sustainability-Linked Loan, with a maturity
30 November 2023.
• Commonwealth Bank of Australia is a Sustainable Finance Lender and is
providing a Sustainability-Linked Loan of $100m, with a maturity 30 November
2024.
• MUFG Bank is a Sustainable Finance Lender and is providing a Sustainability-
Linked Loan of $125m, with a maturity 30 November 2025.
• Deloitte provided assurance over Spark’s Greenhouse Gas inventory and DNV
provided a Second Party Opinion for the targets in the loan to ensure that they
met the international principles and standards.

About the SBTi
• The Science Based Targets initiative is a global partnership that provides a
clearly defined path to reduce emissions in line with the Paris Agreement goals.
The SBTi independently assesses and approves companies’ emissions reductions
targets in line with strict criteria.


Authorised by:
Alastair White
GM Capital Markets

- ENDS –

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