Green bonds supported by the Swedish Local Government Funding Agency have reduced annual carbon dioxide emissions by around 515,000 tonnes. Around 150 sustainable investment projects financed by the Kommuninvest body helped reduce the country’s greenhouse gas footprint by the equivalent of approximately 350,000 cars.
An investment totalling £2.2 billion resulted in 2.1TWh of annual renewable energy generation capacity, as well as making significant energy savings from green buildings, energy efficiency measures, clean transport and improved water and wastewater management.
Among the green projects financed are a new surgery center at the main hospital in Karlstad, the Ängen wastewater treatment facility in Lidköping, the ecological residential district Aspö Ekologi in Skövde and the Wisby high school premises on the island of Gotland.
Tomas Werngren, President and CEO of Kommuninvest, said:
“The opportunity for institutional investors and other stakeholders to receive information about funded projects and their expected environmental benefits are key in order to provide the end-investor, like a pension saver, with relevant information about his/hers savings. At a time when increasing emphasis is placed on the climate impact of mutual funds and pension funds, this is important.”
Kommuninvest Green Bonds raise funds from fixed income investors to support lending for investment projects that seek to mitigate climate change or help adapt to it. To date, they have issued three green bonds, most recently a USD 500 million transaction in May 2017. Kommuninvest is behind the some of the largest green bonds ever issued out of Sweden.
All projects financed are located in Sweden, which aims to be one of the world’s first fossil fuel-free welfare nations. The overall goal of Sweden’s environmental policy is to hand over to the next generation a society in which our country’s major environmental challenges have been solved, without increasing negative environmental and health effects outside Sweden.
To a large degree, Sweden’s efforts are led by the local government sector, which accounts for the majority of public sector investments. More than 90 percent of Sweden’s municipalities have set out own environmental targets or adopted national or regional goals.
Kommuninvest Green Bonds are an opportunity to invest in Swedish climate solutions through a triple-A rated fixed income product, explicitly guaranteed by the members of the Kommuninvest Cooperative Society.
The triple-A credit quality of the Green Bonds is the same as for any other Kommuninvest bonds, with standard documentation and a 2nd party opinion from Cicero, the climate and environmental research institute. Annually, we publish a Green Bonds Impact Report, highlighting the expected or actual impact of the green investment projects that we finance.
Kommuninvest is a member of the Green Bond Principles since May 2016 and seeks an active role in the development of industry-wide standards and frameworks regarding green bond issuance and reporting.
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