Swedish real estate company Hufvudstaden has unveiled a new green financing framework to replace its previous guidelines from 2021.
The updated framework aims to expand the company's access to sustainable financing options, including the issuance of green bonds, commercial paper, and green bank loans.
In response to heightened environmental regulations, the framework prioritizes financing green and energy-efficient properties. Additionally, it supports investments that contribute to climate change mitigation and sustainability.
The new framework incorporates elements of the EU Taxonomy's technical screening criteria for climate change prevention.
Åsa Roslund, CFO, Hufvudstaden, commented: ‘With the updated green framework, we want to offer investors and banks an opportunity to participate in the green transition via our green investments. The financial sector has an important role to play when the real estate industry is to contribute to reaching Sweden's climate goals.’
Karl-Johan Wall, head of Sustainability at Hufvudstaden, added: ‘To achieve our ambitious sustainability goals of climate-neutral management and reduced climate-impacting emissions, we need a new framework that can better support our continued sustainability work.’
Hufvudstaden will allocate proceeds from its green debt issuance to fully or partially fund or refinance green projects. These projects may involve investments in fixed assets, capital expenditures, or operational expenditures. To qualify for financing or refinancing, green projects must be consistent with Hufvudstaden's sustainability strategy and business model, contributing to the transition to a low-carbon, climate-resilient, and sustainable economy.
The framework was developed in collaboration with Svenska Handelsbanken.
Hufvudstaden is aiming to minimize its footprint to achieve climate-neutral property management not later than 2025, energy use per m2 will be reduced by 16%, while all properties have green building certification. The goal for 2030 is to halve climate emissions from project development.
As of December 2023, the Group's property portfolio comprises 29 office and retail properties in Stockholm and Gothenburg valued at SEK 46.7 bn (€4.1 bn).
