Sveaskog first forest company to include the EU taxonomy
Sveaskog has renewed its green framework for sustainable investments, and third parties have assessed that it is in line with the new EU taxonomy. This makes Sveaskog the first forestry company in Europe with a green financial bond framework compatible with the taxonomy.
- “I’m proud that we’re the first forestry company in the EU to introduce a new green framework for bonds in line with the new EU taxonomy. This will lay more solid foundations for new green investments in the forest from an EU perspective and boost our competitiveness,” says Erik Brandsma, CEO of Sveaskog.
The new framework replaces Sveaskog’s green bond framework from 2017, which formed the basis for the company’s previous green bond issues. The new framework is designed to harmonise with the EU taxonomy and thus takes into account the EU’s proposed green bond standard.
The updated green framework was developed in cooperation with Danske Bank. To ensure quality, Sveaskog has commissioned a third-party verification from CICERO Shades of Green. The outcome of their assessment was the highest rating on the scale, Dark Green, and a rating of Excellent for corporate governance.
Background: The EU taxonomy and Sveaskog’s green bonds
To achieve the EU’s climate targets and Green Deal objectives, investments need to be increasingly steered towards sustainable projects and activities. This requires that investors, companies and policy makers can identify and compare investments based on shared definitions of what is sustainable. One of the measures under the EU Sustainable Finance Action Plan is thus to establish a classification system for environmentally sustainable activities, known as a green taxonomy.
Sveaskog was the first forestry company in Europe to establish its first green framework in 2017, setting the standard for financing forestry through green bonds. By updating its green bond framework, Sveaskog seeks to harmonise its FSC-compliant forestry and commitment to development and innovation with the ambitions of the EU taxonomy.
In practical terms, this means that the capital from the green bonds will finance or fully or partially refinance investments and expenses that Sveaskog incurs for forestry, adapted to actively contribute to achieving the Swedish environmental quality objectives, the Paris Agreement and the EU’s climate targets.
For more information, please contact:
Sveaskog's press service, +46 8 655 90 50, press@sveaskog.se
