Kommuninvest awarded “neglible” ESG risk rating from Sustainalytics

We have improved our ESG rating from Sustainalytics. In the latest evaluation we received an ESG Risk Rating score of 9.1, considered “negligible” according to Sustainalytics. This makes us part of the group of financial institutions with the lowest ESG risk rating from Sustainalytics.

Christian Ragnartz, Head of Debt Management at Kommuninvest, comments:

– Investors are placing more stringent demands on issuers relating to ESG factors, and the requirements are gradually increasing. We are pleased with this external review highlighting Kommuninvest’s low ESG exposure and strong management. It also confirms the ratings received from other leading ESG ratings institutions.

Our role is to finance Swedish local government investments, with an emphasis on investments in new housing, expanded infrastructure, hospitals and schools. With a loan portfolio exceeding SEK 350 billion, Kommuninvest is the largest lender to Sweden’s municipalities and regions. We are also Sweden’s largest issuer of green bonds, where the proceeds are earmarked for environmental and climate-related investments.

We have been reviewed according to Sustainalytics’ new ESG Risk Rating methodology, which to a further extent than the former ESG Rating[1] methodology captures financial materiality aspects, the degree to which a company’s enterprise value is exposed to material ESG issues. The risk rating score is group in five categories, ranging from Negligible (score 0-10) to Severe (40+).

The awarded ESG score placed us 12th out of 74 development banks and 12th out of 943 banks reviewed. Less than 18 percent of development banks and 2 percent of banks are considered to be at negligible risk of material financial impacts driven by ESG factors.

 

[1] Kommuninvest’s previous ESG Rating from Sustainalytics was 51 on a scale from 0-100, which placed Kommuninvest in the category ”Average”.

 

Contact information

Christian Ragnartz
Head of Debt Management
tel: +46 10 470 87 06
christian.ragnartz@kommuninvest.se

Björn Bergstrand
Head of Sustainability
tel: +46 70 886 94 76
bjorn.bergstrand@kommuninvest.se