New Zealand’s Sudima Hotels is investing heavily in its sustainability practices, becoming the first hotel group to partner with Bank of New Zealand (BNZ) on a sustainability-linked loan (SLL).
Hind Management Executive Director – Sustainability and Environment for, Kanika Jhunjhnuwala, says the NZ$100 million loan SLL allows for further investment in ESG and better accountability.
“We have publicly stated our commitment to making the world a better place and the the ESG initiatives we have in the pipeline would have been done irrespective of this funding partnership,” Jhunjhnuwala said.
“However, the benefit of this SLL allows us to invest further while adding accountability and transparency to our stated targets, thanks to the rigor of the SLL reporting and measurement process.”
Hind Management’s 2025 goals include reducing actual and potential emissions in Sudima Hotels’ operations, improving accessibility standards to best-in-market, lifting cultural competency across the organisation, and improving the sustainability of the supply chain with a focus on reducing plastic.
“We have made significant headway into our KPIs for 2022, including working with Sunergise towards installing solar panels at our Sudima Auckland Airport hotel,” said Jhunjhnuwala.
“The proposed system would potentially offset over 40% of the daytime load at this specific hotel. We hope others in the sector can see what is possible and be willing to collaborate to share knowledge and initiatives IP for the greater good.
“I am motivated to use this opportunity to advocate for change within our industry. On our journey, I have worked with many of our suppliers to facilitate changes in our supply chain to meet the strict criteria across our hotels. I’m also calling on my peers to meet and work with us, as together we can achieve much more.”
Hind Management worked with sustainability firm thinkstep-anz on its sustainability KPIs.
“What makes Hind Management’s SLL different is the comprehensive approach the company is taking to sustainability,” said Thinkstep-anz CEO, Barbara Nebel.
“By improving the team’s knowledge of te reo and tikanga Māori, championing accessibility and procuring responsibly, Hind Management is focusing strongly on social and cultural outcomes as well as environmental ones. This is still relatively rare. It’s great to see the company taking a leading role in building a more sustainable tourism sector.”
BNZ is targeting $10 billion in sustainable financing by 2025 and believes SLLs will be a key part of reaching that goal.
“BNZ is delighted to be working with Hind Management on this landmark Sustainability-Linked Loan transaction in the tourism sector,” said BNZ Head of Sustainable Finance, Adam Coxhead.
“Hind are showing real leadership in the breadth of environmental and social targets they’ve integrated into their borrowing, and they’re setting the benchmark for others in the sector. This deal will make a real difference in the communities they operate in and to New Zealand.”