Swedish property company has achieved a domestic first by switching all the firm's loan agreements to green financing.
Åsa Lind, head of treasury at Fabege said: 'We are happy and proud to have the privilege of participating as an active party in the great transformation towards an increasingly sustainable and responsible financial market.
'To reach the climate goals in the Paris Agreement, the entire financial world needs to take a major responsibility for the climate.'
With total loans of SEK 26 bn as of 30 September, Fabege is one of Sweden’s largest borrowers and said it saw an opportunity to contribute to a greener financial market by setting a good example.
According to the firm, green financing provides an more robust loan portfolio that handles crises better as well as trusting relationships with creditors and, in addition, lower financing costs.
All of Fabege’s capital market financing is already green, both bonds and commercial paper, as well as most of the bank financing and now the last five per cent of the financing has been converted to green agreements.
In connection with new financing, it is always a requirement that it should be sustainable.
'Fully green financing means that we need to keep on our toes, sustainability shall characterise everything we do and we are continually working to advance our positions and to lead the Swedish property sector’s sustainability efforts,' Lind added.
Fabege's finance commitment adds to its green building commitment. All of the firm's properties have now been certified as sustainable, while the firm is targeting a climate neutral goal by 2030 for its property management operations.
Mia Häggström, sustainability manager at Fabege, said: 'Real estate is the business that has the biggest environmental footprint and for this reason it is important that we as a sector are the forefront in terms of sustainability work.'
