Stena Metall Group has issued two green bonds under the green bond framework. The green bond framework is ranked “dark green” by the independent analysis institute Cicero.
The green bonds offer opportunities to invest in projects with a clear sustainability profile. The funds are targeted to financing and re-financing of projects within the Stena Metall Group that contribute to strengthening the circular transition and ambitious sustainability agenda. The eligible investments under the green frameworks will be followed up and the reports will be published on this website.
Stena Metall Group's latest Green Bond was issued on May 10, 2023. The amount issued was SEK 1 billion, which will be used to finance and refinance projects within the Group that aims to facilitate the transition to a more circular economy.
The framework developed for Stena Metall Group's 2023-2028 green bond is the same as for the 2022-2027 green bond that was issued last year. The proceeds from this bond will be used more broadly for projects with a clear environmental benefit, specifically projects which contribute to increased circularity, moving more material upward the waste hierarchy, or otherwise contribute to reducing the organization's climate footprint, including the Stena Nordic Recycling Center in Halmstad, Sweden.
Eligible investment projects in accordance with the green framework are limited to projects within the subsidiaries in the Group that have circularity integrated into the core business. These subsidiaries are the Stena Recycling companies, Stena Aluminium, HaloSep, and BatteryLoop. The majority of the funding is expected to be allocated to operations within Stena Recycling, which is the Group's largest subsidiary both in terms of turnover and number of employees. The allocation will mainly be dedicated to investments in existing facilities or to acquisitions, in both cases with the aim to strengthen the capacity for circular processes and improved recycling rates.
GREEN BOND 2023 – 2028 FRAMEWORK
Both of Stena Metall Group’s active green bonds, which was issued under the same Green Bond Framework received dark green rating by the rating-institute Cicero. Extract of the summary:
“Based on the project category shadings detailed below, and consideration of environmental ambitions and governance structure reflected in Stena Metall's green bond framework, we rate the framework CICERO dark green./…/ Stena Metall plays an important role in improving the carbon footprint of industries through its business model of supplying these with recycled raw materials /…/ The company has a clear sustainability profile and forward-looking ambitions.”
Stena Metall Group's second Green Bond was issued on April 27, 2022. The amount issued was SEK 1 billion, which will be used to finance and refinance projects within the Group that aims to facilitate the transition to a more circular economy.
The framework developed for Stena Metall Group's second green bond has a wider scope than the first one, which was aimed exclusively at financing a single facility, the Stena Nordic Recycling Center in Halmstad, Sweden. The second bond will be used more broadly for projects with a clear environmental benefit, specifically projects which contribute to increased circularity, moving more material upwards the waste hierarchy, or otherwise contribute to reducing the organization's climate footprint.
Eligible investment projects in accordance with the green framework are limited to projects within the subsidiaries in the Group that have circularity integrated into the core business. These subsidiaries are the Stena Recycling companies, Stena Aluminium, HaloSep, and BatteryLoop. The majority of the funding is expected to be allocated to operations within Stena Recycling, which is the Group's largest subsidiary both in terms of turnover and number of employees. The allocation will mainly be dedicated to investments in existing facilities or to acquisitions, in both cases with the aim to strengthen the capacity for circular processes and improved recycling rates.
In its 2022 report regarding the global green bond market, analysis institute Cicero listed Stena Metall Group's green bond 2022 – 2027 among its best practice examples. Stena Metall Group is acknowledged for its solutions related to efficient resource management and circularity.
