Kerry Logistics Network: A New Benchmark in Sustainable Finance

In the ever-evolving landscape of global logistics, Kerry Logistics Network Limited (KLN) has emerged as a beacon of sustainability, earning the prestigious Best Sustainability-Linked Loan award at The Asset Triple A Sustainable Finance Awards 2025. This accolade is not just a feather in KLN's cap; it is a testament to the company's unwavering commitment to Environment, Social, and Governance (ESG) principles, setting a new benchmark for the logistics sector.



The award recognizes KLN's five-year HK$1 billion syndicated Sustainability-linked & Social Term Loan Facility, signed in 2024. This innovative ESG-linked syndicated loan structure is a first-of-its-kind in the Asia Pacific region, led by MUFG Bank Ltd. The oversubscribed transaction validates KLN's leading position in the logistics sector and its dedication to sustainable operations. Ellis Cheng, Executive Director, Chief Financial Officer, and Chairman of the Sustainability Committee of KLN, emphasized, "Sustainability has always been central to KLN's corporate strategy and long-term development, given the significant and lasting benefits sustainable operation can create for the environment, people, and society."

KLN's commitment to sustainability is not just about financial gains; it is about creating a positive impact on the communities it operates in. The Facility requires KLN to invest in social initiatives across Hong Kong and the Mainland of China, focusing on projects that provide access to employment, essential services, and affordable basic infrastructure. This aligns with the United Nations Sustainable Development Goals (UNSDGs), particularly Goal 8 (Decent Work and Economic Growth) and Goal 9 (Industry, Innovation, and Infrastructure).

The award also highlights KLN's innovative approach to risk management and market positioning. Traditional financing methods do not typically incorporate specific ESG criteria, making KLN's approach more forward-thinking and aligned with modern sustainability goals. The ESG-linked syndicated loan structure provides a clear framework for KLN to achieve its sustainability goals, with specific ESG performance targets verified by independent third-party auditors. This ensures transparency and accountability, reducing the risk of non-compliance and potential reputational damage.

Moreover, KLN's achievement enhances its market positioning as a leader in sustainability. The recognition by The Asset Triple A Sustainable Finance Awards 2025 underscores KLN's pioneering efforts in the logistics sector. As Cheng noted, "We take pride in generating positive impacts in the communities in which we operate. Going forward, we will continue to deliver scalable sustainable logistics solutions and set new standards of sustainability within the third-party logistics sector in Asia Pacific."

In conclusion, Kerry Logistics Network's achievement of the Best Sustainability-Linked Loan award reflects its innovative approach to ESG-linked financing, its commitment to social initiatives, its global impact, and its alignment with global sustainability goals. These factors collectively underscore KLN's broader commitment to sustainability and ESG principles within the logistics sector. As the world continues to grapple with environmental and social challenges, KLN's leadership in sustainable finance serves as a guiding light, inspiring other corporations to follow suit and contribute to a more sustainable future.