MILAN — Intercos Group has signed an agreement with Italian bank Intesa Sanpaolo for a 30-million-euro financing to support the achievement of its ESG targets.

The sustainability-linked revolving facility agreement will expire on Dec. 31, 2024.

The environmental, social and governance targets identified by the corporate include renewable energy consumption, the acquisition of micas minerals — which in cosmetics and skincare are used so as to add shimmery and glowy effects — through sustainable sources and the further improvement of the ESG rating assigned to the group by EcoVadis Sas, a specialist in assessing the sustainability and CSR performance of firms.

Intercos Group’s latest EcoVadis rating, released in March, was 72 out of 100, which earned the corporate a gold medal for the second time. The group is in the highest 2 percent of firms rated by EcoVadis in the sweetness and cosmetics sector and has registered improvement over time, transitioning from a bronze medal in 2018 with a 42/100 rating to a silver medal the next yr with a 53/100 rating. Last yr, it got the gold medal for the primary time with a 67/100 rating.

“Intercos has at all times payed attention to sustainability and, for several years, we now have adopted initiatives that confirm our commitment for a responsible business along our entire production chain, from the availability of raw materials, as much as the reduction of the environmental impacts of production plants,” said the group’s chief executive officer Renato Semerari, underscoring that the financing operation “matches perfectly with the strategy undertaken by Intercos Group in these years.”

The Italian player just isn’t the primary to secure such a deal in the sweetness industry. As reported, last week Puig also secured a 200 million euro sustainability-linked loan in an operation made with Banco Sabadell.

Intercos Group’s financing follows one other initiative the Italian cosmetics manufacturer launched to up its sustainability game. Earlier this yr, the corporate inked a five-year agreement with the University of Milano-Bicocca to team up in conducting scientific research on formulations and sustainable processes geared toward developing progressive beauty products.

As a part of the project, a shared laboratory hosting researchers and tech equipment from each parties shall be established on one in every of the university’s campuses, specifically the one at Vedano al Lambro, a 20-minute drive from the Intercos headquarters.

Dubbed “Joint Lab,” the laboratory will officially kick off its activities next month. The initial, shared investment within the operation was greater than 1 million euros.

Founded in 1972 by Dario Ferrari and based in Agrate Brianza — a 40-minute drive from Milan — Intercos manufactures and supplies lipsticks, eye shadows, mascaras, foundations, powders, pencils, nail polishes and skincare products to around 450 customers globally. It employs about 5,800 people worldwide, distributed through 11 research centers, 15 production plants and 15 sales offices on three continents.

In 2019, the group reported revenues of 712.7 million euros, up 3 percent in comparison with the previous yr. Particularly, makeup accounted for 66 percent of revenues, hair and body products for 20 percent and skin take care of the remaining 14 percent.

Last yr, the cosmetics manufacturer was also planning the IPO, which was eventually postponed on account of the pandemic and consequent change in market conditions.

The corporate has toyed with the concept of an inventory before, but in 2006 plans were shelved given the poor economic climate. In 2014, the firm presented a proper request to list on the Italian Stock Exchange, but in a rapid turnaround, it concluded its road show and released a press release the week before the official listing to withdraw your complete offering, pointing again to deteriorated market conditions.

The improved commitment to sustainability and success of ESG requirements would now play a strategic role in appealing to latest investors and adding further value to the business within the scenario an IPO is reconsidered again.