Port of Melbourne seals $475mln sustainability-linked loan

The Port of Melbourne (PoM) has completed a $475 million sustainability-linked loan (SLL), as part of its decarbonisation strategy.

The loan, financed by a syndicate of 10 banks, links to two sustainability indicators covering scope 1 and 2 emissions reduction, and a mental health first aid workplace certification together with an overarching gateway target tied to engagement with port stakeholders to facilitate scope 3 emissions reduction.

Chief Executive Officer Saul Cannon said the deal reflected PoM’s goal of working with stakeholders to build a sustainable port for the benefit of the Victorian economy.

“As Australia’s largest general cargo and container port, we are committed to facilitating the decarbonisation of the port’s supply chain, minimising the port’s impact on our land, air and waters and building strong stakeholder relationships,” Cannon noted.

“In addition, we’ve committed to engaging with our tenants, shipping lines and other port users on emissions reduction measurement and opportunities.”

The port has commited to achieving net-zero emissions for Scope 1 and 2 for port operations by 2030. As part of this strategy, it is already progressing with various initiatives to potentially reduce scope 3 emissions.

Recently, the PoM signed a Memorandum of Understanding (MoU) with shipping majors Maersk and CMA CGM to explore the commercial feasibility of establishing a green methanol bunkering hub.

Port of Melbourne also recently joined the C40 Green Ports Forum, an organisation of leading cities and ports around the world with ambitious goals to mitigate air pollution and greenhouse gas emissions and deliver positive health and economic benefits for communities.