- Key SLB goals included decreasing Scope 1 and Scope 2 greenhouse gas emissions (GHG) and reaching a more balanced gender diversity in management teams.
- In the performance observation year of 2024, BOSQAR INVEST achieved a total reduction of tracked emissions by 32%, significantly exceeding the planned reduction target of 25.2% by 2027.
- In the same year, the representation of women in management teams reached 48%, surpassing the set target of 47% for 2024.
Zagreb, Croatia, March 5th, 2025 - BOSQAR INVEST (BOSQAR d.d. – ZSE: BSQR) has successfully met its key sustainability performance targets (SPTs) tied to Croatia's first-ever Sustainability-Linked Bond (SLB), which the group issued in 2022.
"We have achieved these goals related to our sustainability-linked bond - the first of its kind in Croatia - despite operating in an environment where our entire group was expanding across all segments, from workforce growth to revenue increase. Naturally, this added complexity and higher demands to our reporting. However, we developed the necessary expertise, driven by our commitment to sustainability goals, as they enable us to make a positive impact and contribute to the society in which we work and live - specifically through reducing gas emissions and increasing gender diversity in management teams," Darko Horvat, President of the Management Board of BOSQAR d.d., said.
The EUR 40 million SLB was issued with a fixed annual interest rate and a five-year maturity period, linking financing costs directly to the achievement of sustainability key performance indicators (KPIs).
Primary KPIs
The two primary KPIs set in the SLB framework include decreasing Scope 1 and Scope 2 greenhouse gas emissions (GHG) and reaching a more balanced gender diversity in management teams.
GHG emissions decrease: As of December 31, 2024, BOSQAR INVEST has achieved a total reduction of Scope 1 and Scope 2 emissions by 32%, well ahead of the planned 25.2% reduction by 2027. This success comes despite acquisitions that altered the Group's baseline emissions.
Balanced gender diversity in management teams: BOSQAR INVEST has also made strides in reaching a more balanced gender diversity in management teams. By December 31, 2024, women comprised 48% of management teams, surpassing the interim target of 47%.
Measuring Performance
To measure the achievement of the Sustainability Performance Targets as defined in the Prospectus, the group utilized key performance indicators (KPIs) and their associated sustainability performance targets (SPTs).
The first KPI focuses on decreasing Scope 1 and Scope 2 greenhouse gas emissions (GHG). The corresponding SPT aims for an absolute reduction of these emissions by 25.2% by 2027 from the 2021 baseline.
The second KPI centered on reaching a more balanced gender diversity in management teams, with an SPT targeting 51% representation of women in management, including governance bodies, by the end of 2030.
The SLB is structured to directly link the cost of borrowing to the fulfillment of these sustainability commitments. Should the KPIs not be met, the coupon rate would be adjusted, resulting in an increased interest rate.
To assess progress toward these targets, December 31, 2024, was established as the observation date in the Prospectus. By this date, the Group was required to achieve a minimum 15% decrease in absolute Scope 1 and Scope 2 GHG emissions compared to the 2021 baseline.
Additionally, by the same date, the Group aimed to reach a representation of women in management teams of at least 47%, reflecting an increase of four percentage points from the 2022 baseline.
You can find the full Report on Performance Indicators of Sustainability-Linked Bonds as of December 31, 2024, here.
The Group's latest ESG report is available here.