Scania has successfully qualified for issuance of green bonds to accelerate decarbonising the transport system, following an independent assessment of its Green Bond Framework.
“We’re very proud to join the group of forward-looking companies that qualify for green bond financing,” says Scania’s Chief Financial Officer Johan Haeggman. “Scania is fully committed to driving the shift to a fossil-free transport system and green bonds will enable us to accelerate change. We recognise that decarbonising transport systems throughout the world in the forthcoming years will require partnership efforts across many sectors, including the financial community.”
The Green Bond Framework constitutes the basis for identifying, selecting, verifying and reporting projects that are eligible for financing by green bond proceeds. Well-established Norwegian CICERO Shades of Green has rated the framework ‘dark green’, which is allocated to projects and solutions that correspond to the long-term vision of a low carbon and climate resilient future.
Scania has set ambitious carbon-reduction goals as underwritten by the Science Based Target initiative. These include that from 2015 halving carbon emissions from its own operations by 2025 as well as reaching a 20-percent reduction of CO2 emissions from its trucks, buses and engines when in use, which constitutes more than 95 percent of Scania’s environmental impact. Scania has already reached its 2020-target to transition all its ten major production facilities worldwide to fossil-free electricity.
“The entire transport ecosystem has the monumental and unprecedented task of – in one single generation–
shifting from total dependency on oil to fossil-free transport,” says Andreas Follér, Scania’s Head of Sustainability. “While this may seem daunting, it is also one of the most exciting challenges of our times. We are now inviting investors to join us on this journey.”
The proceeds from Scania’s green bonds will be exclusively channelled to projects that will have a profound impact in reducing CO2 emissions. These might include boosting the performance of heavy electric trucks and buses, e-bus based public transport systems and establishing an efficient charging infrastructure for electric trucks and buses.
In accordance with the Green Bond Principles, proceeds will be managed in separate accounts and the allocation transparently reported with the obtained carbon savings.