Green Bond Impact Report
Handelsbanken issued its first green bond in 2018, a five-year bond at a total value of EUR 500 million. This was followed by a second issuance in 2020, again at a total value of EUR 500 million, but this time with a maturity period of seven years. Recently, for the third consecutive year, the Bank published the Handelsbanken Green Bond Impact Report, which shows that the funding is estimated to have contributed to reduced emissions of carbon dioxide of just over 360 000 tonne.
Financing green projects
Through its issuance of green bonds, Handelsbanken supports the long-term growth of sustainable solutions by financing green projects. The issuance of green bonds is facilitated by Handelsbanken’s Green Bond Framework. An independent evaluation of the framework has been carried out by CICERO (the Center for International Climate Research) and received the highest grade. The two issuances attracted keen interest from the market, and were heavily oversubscribed. We are seeing a further expansion of the Nordic market for green bonds as investors show a great interest in the funding of green and sustainable development.
Carl Cederschiöld, Group CFO at Handelsbanken:
–The financial sector is regarded as increasingly critical in terms of speeding up the transition to a sustainable and carbon-neutral community. Handelsbanken wants to play a leading part in this by providing financing to companies, green mortgage loans to private customers, and by offering other sustainable investment solutions. I’m proud to be able to present our third Green Bond Impact Report, where you can read more about the projects that have been funded by our green bonds.
Handelsbanken’s sustainability goal within financing
In the area of financing, Handelsbanken has set a sustainability goal that 20 per cent of the Bank’s lending is to be defined as ‘green’, or linked to sustainability, by 2025. By issuing green bonds, we are able to finance our customers’ green and sustainable investments, so this is part of the work to achieve this goal. Examples of this are green buildings, renewable energy, sustainable transport solutions, sustainable forest management, and other types of projects with similar objectives.
More about Handelsbanken’s Green Bond Impact Report
- During 2020, Handelsbanken’s green bonds contributed to the reduction or avoidance of carbon dioxide emissions, amounting just over 360 000 tonnes.
- The approved green assets in Handelsbanken’s green register increased in 2020. At the first time of issue, in the summer of 2018, these amounted to approximately SEK 10bn. At the end of 2020, volumes had increased to SEK 14.1bn.
- The report covers all projects which have been financed by our green bonds. Two customer projects from the Green buildings and Sustainable forest management categories are also presented.
- The main areas from which the reduced emissions can be derived are renewable energy, cogeneration, and sustainable forest management.
- The estimated annual energy production from financed projects amounts to 1.101 GWh.
- The report has been audited by Ernst & Young.
