Nokia has taken a significant step forward in its sustainability journey by securing a €1.5 billion five-year multi-currency revolving credit facility (RCF) that ties the cost of borrowing to the company's environmental performance. This innovative financial instrument underscores Nokia's commitment to reducing its carbon footprint, with the margin of the RCF adjusting based on the company's progress toward cutting greenhouse gas (GHG) emissions across its operations and value chain.

The new RCF, which replaces a previous €1.412 billion facility from 2019, includes two one-year extension options and links the pricing mechanism to two key sustainability targets: the reduction of absolute Scope 1 and 2 GHG emissions, and the reduction of absolute Scope 3 GHG emissions. These targets will be assessed annually, with any adjustments to the RCF margin impacting the following year, thereby incentivizing Nokia to meet its environmental objectives.

Marco Wirén, Nokia's Chief Financial Officer, expressed enthusiasm for the strong backing from banking partners in this refinancing transaction, highlighting the alignment of Nokia's financing strategy with its sustainability priorities. Subho Mukherjee, Vice President of Sustainability at Nokia, further emphasized the company's dedication to its climate transition plan, which aims to foster efficiency and innovation throughout its value chain.

Nokia's ambitious net-zero target by 2040, validated by the Science Based Targets initiative (SBTi), is a testament to the company's long-term commitment to environmental stewardship. The detailed operational approach to reducing GHG emissions, as outlined in Nokia's Net-Zero climate transition plan, reflects a comprehensive strategy to decarbonize its operations and supply chain. This latest financial move not only reinforces Nokia's sustainability agenda but also sets a precedent for how corporations can integrate environmental goals into their financial strategies.

Italian aerospace and defense conglomerate Leonardo has taken a significant step into the cybersecurity sector by acquiring a 24.55% stake in Finland's SSH Communications Security Corporation. This strategic investment, valued at approximately €20 million, positions Leonardo as the largest shareholder in SSH, surpassing Accendo Capital, which will retain a 20.87% stake post-transaction. The move underscores Leonardo's commitment to expanding its cybersecurity capabilities in an increasingly digital and interconnected world.

The partnership between Leonardo and SSH is set to leverage SSH's expertise in Secure Shell (SSH) protocol and Privileged Access Management (PAM) solutions, areas critical for securing digital communications and access to sensitive systems. SSH's global reputation and technological advancements, including quantum-safe encryption technologies, align with Leonardo's strategic objectives to enhance its cybersecurity offerings. This collaboration is expected to drive innovation in protecting critical infrastructure and digital assets against evolving cyber threats.

Roberto Cingolani, CEO and General Manager of Leonardo, highlighted the acquisition as a pivotal element of the company's industrial plan, aiming to establish Leonardo as a leader in the Zero Trust revolution in Europe. The deal not only expands Leonardo's international portfolio but also strengthens its position in the cybersecurity market, which is anticipated to experience double-digit growth in the coming years.

The transaction, subject to certain conditions, marks a significant milestone for both companies. For SSH, the investment by Leonardo opens new avenues for growth and collaboration in the defense sector, a market with compelling opportunities. For Leonardo, the stake in SSH represents a strategic move to bolster its cybersecurity business, reflecting the growing importance of cyber defense in modern warfare and security strategies. Together, Leonardo and SSH are poised to address the complex challenges of cybersecurity in an era of digital transformation and geopolitical tensions.