Finnish energy leader commits to sustainable financing, targets renewables, efficiency, and select nuclear projects.
Finnish energy giant Fortum is doubling down on its clean energy ambitions with the launch of a Green Finance Framework. This framework paves the way for Fortum to raise capital through green bonds and loans (Green Debt) to fund projects that drive decarbonization and energy efficiency across the Nordics.
“We at Fortum want to be at the forefront of the clean energy transition,” declared Tiina Tuomela, Fortum’s CFO. “This framework underscores our commitment to delivering reliable clean energy while actively reducing emissions and promoting environmental sustainability.”
The framework aligns with the International Capital Market Association’s (ICMA) Green Bond Principles 2021 and the Green Loan Principles 2023, ensuring transparency and accountability in Fortum’s green financing activities. Eligible projects include renewable energy and energy efficiency initiatives, as well as select nuclear power projects, with clear disclosure at issuance if nuclear is part of the funding plan.
This move builds on Fortum’s already impressive green credentials. 97% of the company’s EBITDA comes from CO2-free hydro and nuclear power, making them one of Europe’s cleanest power generators. They boast ambitious targets of carbon neutrality by 2030 and complete coal phase-out by 2027, further strengthened by their commitment to science-based emission reduction targets.
Fortum’s Green Finance Framework is not just about ticking green boxes; it’s a strategic move to fuel their ongoing transformation and development. They aim to leverage this framework to allocate capital to existing clean energy assets and invest in new projects that accelerate decarbonization in industries across the Nordics.
With Danske Bank serving as an advisor and Sustainalytics providing a second-party opinion, Fortum’s Green Finance Framework offers investors a credible and transparent pathway to support a leading energy player in its journey towards a greener future.
This is just the latest chapter in Fortum’s ongoing saga of clean energy leadership. With their Green Finance Framework, they are setting a high bar for sustainable financing in the energy sector, paving the way for a brighter, cleaner future for the Nordics and beyond.