NIB signs sustainability-linked loan with Electrolux Group

The Nordic Investment Bank (NIB) and AB Electrolux have signed a USD 150 million (approximately EUR 140 million) eight-year sustainability-linked loan.

Electrolux Group was one of the first 100 companies worldwide to sign up for the Science Based Targets initiative (SBTi) and get their carbon emission reduction targets approved by SBTi back in 2018. The targets were fulfilled in 2022, three years ahead of target.

New carbon emission reduction targets were approved by SBTi in 2023 in which Electrolux Group aims to reduce carbon emissions from own production facilities (Scope 1&2) by 85% and decrease CO₂ emissions in the value chain (Scope 3) by 42% by 2030 compared with 2021. In addition to these climate targets, the NIB loan agreement contains a third Scope 3 target to decrease Electrolux Group carbon emissions from the use of sold products (with fixed energy mix and sales volumes) by 1% per year until 2027. The interest rate margin on the sustainability-linked loan is linked to these targets.

“Electrolux Group is a long-standing customer of NIB, with the first loans dating back to the 1980s, and we’re pleased to continue the collaboration with a sustainability-linked loan. Electrolux Group has demonstrated a strong commitment to playing their part in minimising the climate impact across their value chain,” says André Küüsvek, NIB President and CEO.

“Our science-based target guides our efforts to continue reducing our carbon footprint significantly, and we appreciate the ongoing support from NIB to help us achieve it. From the energy we source in our operations, to coming up with innovations that allow both ourselves as a business and anyone who buys our products, to have a lower impact on the planet is central to us,” says Elena Breda, Electrolux Group Chief Technology and Sustainability Officer.

Electrolux Group is a leading global appliance company. Under a group of leading appliance brands, including Electrolux, AEG and Frigidaire, the Group sells household products in around 120 markets every year. In 2023 Electrolux Group had sales of SEK 134 billion and employed 45,000 people around the world.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Nicolas Audibert, Director, Lending department, and Country Lead for Sweden, at +358 50 311 3689, Nicolas.Audibert@nib.int

Lotta Forssell, Senior Communications Officer, at +358 10 618 0498, lotta.forssell@nib.int