Treasury Wine Estates is Australia’s largest wine company and one of the biggest in the world. Its household brand names include Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate.
Shares in the winemaker are up 0.66% to $12.14 in afternoon trading. They rose by 1.5% in an early morning push to $12.24 before slipping back.
For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.5% today.
Let’s take a look at what Treasury Wine Estates announced today.
Treasury Wine Estates announced it will convert $1.4 billion of its financial loans into sustainability-linked loans. The company claims that this is one of the biggest sustainability loans in the Asia-Pacific.
By establishing loans, the company will have a financial incentive to reach its green targets. These include 100% renewable electricity by 2024, reducing greenhouse emissions, and reviewing its water usage and footprint.
Sustainability loans tie the company’s performance on these targets to the cost of the loan.
Treasury Wine Estates also aims to have 50% of the company’s senior leadership positions filled by women. It also wants 42% of its company representatives to be women by 2025.
The Treasury Wine Estates share price has soared about 27% year-to-date after falling 41% in value in 2020.
As my Foolish colleague Mitchell reported this week, analysts expect the winemaker’s share price to rally by as much as 12.8% to $13.80 in 2022.
Speaking about the announcement today, chief financial officer, Matt Young, said:
Integrating our sustainability performance with our financing framework is a really important step for both our sustainability and capital market journeys, incentivising us to move even more quickly towards achieving our sustainability ambitions and targets.
Chief sustainability and external affairs officer, Kirsten Gray, added:
As custodian of some of the world’s most iconic wine brands and with a large global footprint, we have a responsibility to be a leader in sustainability and recognise that it is fundamental to our long-term success.
Treasury Wine share price snapshot
While the Treasury Wine Estates share price has gained nearly 29% over the past 12 months, the ASX 200 is up 9%.
In the past month, Treasury Wine Estates shares have gained nearly 7%.
The winemaker has a market capitalisation of about $8.7 billion.