New framework for Green and Sustainability-Linked Finance
SSAB has launched a new combined Green and Sustainability-Linked Finance Framework that will support SSAB’s transformation to fossil-free steelmaking and investments in more efficient and flexible production systems. The combined framework provides SSAB with an opportunity to issue both green and sustainability-linked financing instruments, as well as a combination of the two.
The new framework consists of two key parts. It integrates SSAB’s updated and more ambitious greenhouse gas emission reduction targets, which have been certified by the Science Based Targets initiative (SBTi), to bring them in line with the Paris Agreement’s aim to keep the global warming rise to 1.5°C. The framework also defines the criteria for green finance projects and the purpose for which the proceeds may be used. The sustainability-linked part of the framework is an update of SSAB’s Sustainability-Linked Finance Framework from 2021.
“With our new finance framework, we are taking a pivotal step in our transformation toward fossil-free steelmaking and reduced carbon dioxide emissions. The framework contains ambitious, science-based emission reduction targets and sets clear guidelines for our green investments going forward,” says Leena Craelius, CFO at SSAB.
The green finance element includes two categories: “Eco-efficient products, production technologies and processes” and “Renewable energy”.
SSAB recently became one of the first steel companies in the world to receive validation of science-based carbon dioxide reduction targets according to the SBTi’s steel sector guidelines published in 2023. The targets build on SSAB’s overall strategy to transform the Nordic blast furnace-based production system into fossil-free mini-mills, thereby largely eliminating CO2 emissions from our own operations. Once completed, the transformation will remove about 10% of Sweden’s and 7% of Finland’s total CO2 emissions.
Skandinaviska Enskilda Banken (SEB) acted as structural advisor on the establishment of the framework. Sustainalytics acted as independent external reviewer and second party opinion. According to Sustainalytics, the SSAB Green and Sustainability-Linked Finance Framework is credible, impactful and aligns with several principles for green and sustainable bonds (the Sustainability-Linked Bond Principles 2023, Sustainability-Linked Loan Principles 2023, Green Bond Principles 2021 and Green Loan Principles 2023 published by the International Capital Market Association ICMA)
More information about the framework and Second Party Opinion is available on SSAB’s website:
www.ssab.com/en/company/investors/debt-financing
SSAB Press release: SSAB’s updated climate goals approved by the Science Based Targets initiative
For further information, please contact:
Gunillla Hjalmarson, Head of External Communications, gunilla.hjalmarson @ ssab.com, phone: +46 76 117 9185
Kati Vellinki, Vice President and Head of Treasury, kati.vellinki @ ssab.com, phone: +358 50 415 4016
SSAB is a Nordic and US-based steel company that builds a stronger, lighter and more sustainable world through value added steel products and services. Working with our partners, SSAB has developed SSAB Fossil-free™ steel and plans to reinvent the value chain from the mine to the end customer, largely eliminating carbon dioxide emissions from our own operations. SSAB Zero™, a largely carbon emission-free steel based on recycled steel, further strengthens SSAB’s leadership position and our comprehensive, sustainable offering independent of the raw material. SSAB has employees in over 50 countries and production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. Join us on our journey! www.ssab.com, Facebook, Instagram, LinkedIn, X and YouTube.
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