Tetra Tech, a provider of consulting and engineering services in water, environment and sustainable infrastructure, established a $1 billion sustainability-linked credit facility.
Bank of America led the lender group for the facility with joint lead arrangers Wells Fargo Bank, U.S. Bank and Bank of Montreal. The lender group further included the support of HSBC Bank USA, The Bank of Nova Scotia, BNP Paribas and City National Bank. Bank of America acted in the sole capacity of sustainability coordinator.
Since the inception of its sustainability program, Tetra Tech has reduced greenhouse gas (GHG) emissions from its operations by 78%. On Earth Day 2021, Tetra Tech announced more ambitious sustainability goals to be carbon negative and improve the lives of one billion people by 2030. Tetra Tech has also joined the United Nations Global Compact and is a signatory to the Science Based Targets Initiative (SBTi).
Tetra Tech is further advancing its commitment to sustainability by linking its new credit facility to two key performance indicators:
- Reduction of GHG emissions (tons of CO2e) through Tetra Tech’s projects and operational sustainability initiatives
- Improvement of people’s lives as a result of Tetra Tech’s projects that provide environmental, social and governance benefits
“The sustainability-linked credit facility announced today recognizes the global scale of Tetra Tech’s ‘leading with science’ approach and reaffirms our commitment to improving the lives of people around the world,” Dan Batrack, chairman and CEO of Tetra Tech, said.
“We are establishing a ground-breaking and first-of-its-kind measurement and quantification of environmental and social benefits directly associated with the projects the company performs,” Dr. Leslie Shoemaker, president and chief sustainability officer of Tetra Tech, said. “The quantification of the impact of our projects augments existing sustainability initiatives in our operations to foster efficiencies such as remote working and virtual meetings, energy-efficient offices and cloud-based IT systems.”
The credit facility increases the company’s borrowing capacity by an additional $100 million and provides for up to a 5% reduction in the interest rate grid for meeting the sustainability targets.
“We are pleased that the bank lender group has recognized Tetra Tech’s long-term commitment to advancing sustainability and incorporated financial rewards in our credit facility for achieving measurable benefits,” Steve Burdick, CFO of Tetra Tech, said.