Sustainable finance framework
Sustainable finance plays an important role in achieving the objectives of both the European Green Deal and the United Nations 2030 Agenda for Sustainable Development. By integrating sustainability criteria into our investment decisions, particularly when selecting financial instruments, we seek to accelerate the transition to more responsible and resilient production models, positively distinguishing companies with stronger environmental, social and governance practices.
It is for these reasons that, since 2024, we have been developing the Jerónimo Martins Group’s Sustainable Finance Framework1, covering a broad range of financial instruments, including:
Green Loans or bonds, used to finance the investment in specific climate or environmental projects;
Sustainability-Linked Loans or bonds, intended to finance the company’s own activity on its sustainability path, with environmental and social performance indicators monitored from among the five defined in the framework;
Supply chain financing instruments, in this case indexed to the sustainability of the suppliers being financed.
This document sets out our approach in this area and is aligned with the following frameworks:
The Green Loan Principles and the Sustainability-Linked Loan Principles, published by the LMA – Loan Market Association (the authoritative voice of the syndicated loan market);
The Green Bond Principles and the Sustainability-Linked Bond Principles, published by the International Capital Market Association (ICMA).
The environmental and social performance indicators included in our sustainable finance programme were selected based on the material topics identified in our double materiality matrix and represent ambitious commitments within the scope of our sustainability strategy. The Sustainable Finance Framework was certified by an independent and accredited third-party organisation.
Instruments in progress
In 2023, Jerónimo Martins Polska (Biedronka) took out a Green Loan with the European Investment Bank (EIB) to finance the energy conversion of the entire Biedronka store network, increasing its energy efficiency and reducing carbon emissions and air pollution. The Company began using this facility, totalling 1.5 billion złoty (around 348 million euros) in 2024. Between 2023 and 2025, under this programme, Biedronka finalised the refurbishment of more than 600 stores to improve their energy efficiency by implementing closed-loop cooling systems running on natural gases, thermal insulation of buildings, and a building management system, in line with the European Energy Performance of Buildings Directive (EPBD).
In 2024, Jerónimo Martins Colombia (Ara) took out a Green Loan with the International Finance Corporation (IFC) for 120 million dollars (around 115 million euros) to finance the construction of two distribution centres in accordance with criteria that would qualify for EDGE (Excellence in Design for Greater Efficiencies) certification. Both distribution centres are already operational and obtained EDGE certification in early 2026, thereby meeting the conditions required for access to more favourable financing while we promote, together with the IFC, the transition to more responsible and efficient production models. EDGE certification is expected to enable estimated savings of up to 25% in energy consumption and up to 60% in water consumption, compared with the benchmark. As for the reduction in GHG emissions, this is expected to be in the order of 40%.
We also maintained our guarantee issuance facility contracted by Jerónimo Martins, SGPS, S.A., which was reclassified as sustainability linked. This facility, of around 350 million euros, have more favourable financing conditions linked to the achievement of two indicators selected by the financial institution from among the five defined in the Framework.
We also continue to work on converting our supply chain financing facilities, commonly known as “confirming” facilities, requalifying them as ESG Confirming facilities. With these facilities, suppliers can receive early payment from the bank of invoices issued to Jerónimo Martins Group Companies, with a cost that will depend on their ESG rating, resulting from an assessment carried out by Ecovadis, or on the outcome of the ESG audits carried out by the Group of the supplier concerned. This means that the cost to the supplier will be lower, depending on how well they score. Additional information about these facilities is provided in “Supplier payment practices and initiatives”.
In 2025, we secured financing through two new Commercial Paper Programmes, both in the form of Sustainability-Linked Commercial Paper, via private placement and direct offering, each for a maximum amount of 50 million euros. A sustainability-linked bond was also issued, with a three-year maturity and a fixed interest rate, in the amount of 50 million euros. These three new loans are indexed to sustainability objectives tied to monitoring and disclosing the social impacts generated by the support initiatives of the Jerónimo Martins Group Companies, and the annual waste recovery rate.
At the end of 2025, we had four categories of sustainable financial instruments in place, one more than in 2024: Green Loans, Supply Chain Financing Agreements, Guarantee Issuance Credit Facilities, and Sustainability-Linked Loans. The nearly 1,450 million euros raised (30% more than in 2024) represent around 29% of the Group’s total financial instruments. Our goal is to progressively increase the financial instruments under our Sustainable Finance Framework within the global portfolio.
1 This document is available on our corporate website.