Electrolux Launches a Green Bond Framework to Fund Climate Investments and Other Environmental Initiatives
STOCKHOLM: AB Electrolux today introduces a green bond framework with an intention to raise funds earmarked for investments contributing to reduced environmental impacts from the company’s products and operations. The initiative is designed to enable debt market investors to allocate funds specifically to industrial projects with a positive climate impact or other environmental benefits.
The proceeds will be used to finance or refinance projects covered by the environmental areas of Electrolux sustainability framework For the Better. This may include investments in R&D to improve the energy or water efficiency of appliances, development of recycled materials, elimination of refrigerants with high greenhouse warming potential, improved energy or water efficiency at Electrolux factories and increased use of renewable energy, for example through installation of solar panels.
“We’re very pleased to complement our debt structure with loans that offer investors transparency around which projects they are funding as well as the environmental impact,” said Therese Friberg, Chief Finance Officer of Electrolux. “As a sustainability leader in the appliances industry, Electrolux has a great opportunity to provide a credible alternative in this segment. We believe this framework will be of particular interest to the market, as our green bonds will be focused on industrial and R&D projects, which have significant potential in enabling us to reduce our climate impact.”
In 2018 Electrolux set science based climate targets, aiming to reduce greenhouse gas emissions from operations by 80% and emissions from products by 25% by 2025. The company has been independently recognized for its efforts. In 2019, it was for the third year in a row included on the CDP Climate Change A List. Electrolux has also for 12 consecutive years been named Industry Leader in the Household Durables category in the Dow Jones Sustainability World Index (DJSI World).
The new framework has been developed together with SEB in alignment with the Green Bond Principles 2018, with projects eligible for funding defined to support the UN’s Sustainable Development Goals and the Paris Climate Agreement. The framework has been independently evaluated by the Center for International Climate Research (CICERO). Read more here.
To enable investors and other stakeholders to follow the development of Electrolux green bond issuance and to get insight into how the green bond proceeds are used, Electrolux will provide an annual Green Bond Impact Report.