227 green investment projects financed by Kommuninvest green bonds contribute to avoid or reduce just over 662,000 tonnes in annual CO2 emissions, according to the issuer’s third green bonds impact report. This corresponds to emissions of approximately 448,000 cars with an annual mileage of 12,000 kilometres.
By year-end 2018, the Swedish local government funding agency had built up a portfolio of 227 eligible green projects in 109 Swedish municipalities and regions, with Green Loan disbursements totalling SEK 25.8 billion (USD 2.9 billion). The Green Loan Ratio, ie. the total amount of Green Loans divided by the total loan portfolio, was 7.4 percent.
Kommuninvest’s impact report provides investors and other stakeholders with impact information regarding the 227 investment projects financed by Green Bonds issued by Kommuninvest. The report is available for download as PDF, with the complete project-by-project reporting available in spreadsheet format. Impact is calculated and reported in accordance with recommendations outlined by a group of Nordic public sector issuers of Green Bonds, in the Nordic Position Paper on Green Bonds impact reporting.
Among the green projects financed and highlighted in the report are numerous projects for the municipalities of Kristianstad, Skellefteå and Uppsala, including the Kristianstad public transport link, northern Europe’s largest wind farm in Skellefteå and a new city bus depot in Uppsala, for buses powered by biogas, biodiesel and electricity. In Vårgårda, green bonds finance the ambitious renovation and extension of a housing complex built during the 1960s. Thanks to the use of solar energy, fuel cells, hydrogen gas and batteries, 172 apartments and six buildings will become self-sufficient in energy for heating and building electricity.
Green bonds also finance the Mars project in Trollhättan with 177 apartments, where the Nordic Swan ecolabel has been awarded. Considerable attention has been put on social aspects, with a welcoming inner yard comprising a conservatory, playground, outdoor gym and benches among plantings with edible fruit and berry bushes. The block also comprises
housing for the elderly. Tenants will be provided with a 5-year free membership in a car pool.
Tomas Werngren, President and CEO of Kommuninvest, is a strong proponent of impact reporting as part of a green finance programme.
– 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.
Report highlights and impact results, as of 31 Dec 2018
- Five (three) Kommuninvest Green Bonds issued in USD and SEK, totalling SEK 20.4 (14.4) billion, of which SEK 20.4 (14.4) billion was outstanding at year-end 2018 (2017).
- 227 (146) Green Bond Eligible Projects with disbursements totalling SEK 25.8 (19.9) billion and commitments totalling SEK 39.7 (26.6) billion at year-end 2018 (2017).
- 109 (81) local governments had chosen to finance green investments with Green Loans from Kommuninvest. This represented 38 (28) percent of the total number of members in the Kommuninvest Cooperative Society
- The total expected annual greenhouse gas (GHG) emissions savings have been calculated at 662,390 (514,944) tonnes CO2, of which 638,932 tonnes CO2 are considered to be avoided emissions and 23,458 tonnes CO2 are considered to be reduced emissions. Avoided emissions refers to a baseline/alternative reference scenario while reduced emissions refers to a direct or absolute reduction in operation.
The greatest contributions to emissions savings come from projects in the renewable energy, energy efficiency and green buildings project categories.
- The total annual renewable energy generation from financed projects have been calculated at 3.0 (2.1) TWh, while energy savings from energy efficiency projects amount to 110.8 (110.8) GWh and energy savings from green buildings amount to 33.9 (26.3) GWh.
- The Green Loan Ratio, ie. the total amount of Green Loans divided by the total loan portfolio, was 7.4 percent. The Green Bond Ratio, the total amount of Green Bonds outstanding divided by total amount of debt outstanding, was 5.1 percent.
About the Kommuninvest Green Bonds Framework
Under its Green Bonds Framework, Kommuninvest provides lending to Swedish municipal investment projects in eight areas, including renewable energy, energy efficiency, green buildings, public transport, water management and waste management.
Kommuninvest expects to continue to grow its green loan portfolio, and to be able to be a frequent issuer of green bonds, in multiple currencies. Looking at the pace and direction of Swedish local government investment, Kommuninvest expects to grow its green lending portfolio from currently 7-8 percent to 15-20 percent in a few years’ time.
 Based on average emissions from new cars in Sweden in 2016: 123.1 g CO2 per km in mixed driving conditions. Source: Swedish Transport Agency
Head of Sustainability/Senior Investor Relations Manager
tel: +46 (0)70-886 94 76