Kommuninvest’s view is that integrated consideration for the environment is a prerequisite for long-term value creation. The work is partly performed by addressing the direct environmental impact of the office operations, purchasing and services, and partly by managing the indirect environmental impact from the financial operations, i.e. lending, borrowing and management of the liquidity reserve.
Reduced emissions from business travel
Kommuninvest’s direct environmental impact primarily relates to energy use at the Örebro head office, office supplies and business travel. Kommuninvest seeks to reduce the environmental impact of office operations, by means of environmentally labelled electricity, motion-controlled lighting and plumbing fixtures, micro-flush toilets, and a high level of recycling/sorting of waste. The nature of operations implies a need for domestic and international long-distance travel. Train is to be prioritised between locations with favourable connections. After a major renovation in 2016, the Company expanded into larger office space in 2017. Compared with 2015, energy consumption has been reduced to 264 (271) kWh per sq.m., however energy consumption per employee has risen to 6,436 (5,447) kWh per employee. In 2017, carbon dioxide emissions from business travel amounted to 139.2 (231.7) tonnes or 1.5 (2.7) tonnes per employee.
Digitisation reduces paper consumption
Through a major digitisation project, Kommuninvest is becoming increasingly paperless. Client mailings, which are now available in digital format through the KI Finans debt management service include membership contribution certificates, commitment advice slips, guarantee certificates, deposit, engagement statements and interest advice slips for subordinated loans. In addition to reduced paper consumption and reduced distribution costs, transport needs also diminish. Overall, paper consumption decreased in 2017 by more than 35 percent to 0.5 (0.8) tonnes.
Green Loans support the local government sector’s sustainability efforts
Of late, initiatives at the local and regional levels have gained increasing emphasis in global sustainability efforts. Consequently, the Swedish municipalities’, counties’ and regions’, ambitious sustainability initiatives make a significant contribution towards achieving the global sustainability targets.
Green Loans were introduced in 2015 and allow financing of investment projects undertaken by Kommuninvest’s member municipalities and county councils/regions, including renewable energy, energy efficiency, green buildings, public transport and water management. Approved projects must promote the transition to a climate resilient society with low emissions and be part of the systematic environmental efforts of the borrower. At the end of 2017, Kommuninvest had approved SEK 26.9 (17.8) billion for 149 (83) green investment projects. Most of the projects involve renewable energy and green buildings. The total anticipated annual reduction in CO2 emissions from these projects is published in the Kommuninvest Green Bonds Impact Report, available on the Company’s web page.
All projects are reviewed from an environmental perspective by Kommuninvest’s environmental committee for Green Bonds. The Committee is an advisory body composed of representatives from the environmental function in at least two member municipalities and county councils/regions, environmental experts from other relevant organisations in the public sector or academia, as well as from Kommuninvest’s customer group.
Framework covering broad environmental efforts
Swedish municipalities and county councils/regions conduct a broadly oriented environmental activities, including essential elements of the local/regional infrastructure. Kommuninvest’s framework for Green Bonds has been developed to respond to needs. Projects in eight different categories can currently obtain financing with Green Loans.
|# of projects|
|Green buildings||13.009,3||9 829.3||89|
|Renewable energy||9 858.7||7 692.0||39|
|Water management||3 218.9||1 587.6||12|
|Total||26 933.7||19 954.9||149|
Green lending and borrowing
31 December 2017
Committed volume Green Loans
Green Loans disbursed and outstanding Green Loans
Green Bonds issued and outstanding
Largest Swedish issuer of Green Bonds
Kommuninvest finances Green Loans by issuing Green Bonds. Three Green Bonds have been issued since March 2016, and a total of SEK 14.4 (10.0) billion was outstanding at the end of 2017. Investors consist primarily of institutional investors with a clear sustainability focus, such as Affirmative Investment Management, AP-fonderna, Alecta, Amundi Folksam Group, German KfW, SEB Investment Management, SBAB, SPP Storebrand, the CalSTRS pension fund for teachers in California, and the UN employees’ pension fund (UNJSPF).
Active role in the development of industry standards
Kommuninvest’s Green Bond framework adheres to a number of principles and guidelines voluntarily developed by market participants. Kommuninvest is a member of Green Bond Principles. In 2017, the Nordic Public Sector Issuers report was launched: Position Paper on Green Bonds Impact Reporting, a collaboration on impact reporting between Nordic public Green Bond issuers. This initiative has been led and coordinated by Kommuninvest.
UN award for green financial cooperation
Since the launch of the green framework, Kommuninvest has received several awards. At the climate summit in Bonn in the autumn of 2017, the UN Climate Secretariat noted 19 global initiatives as role models in climate adjustment. Kommuninvest received the Momentum for Change Climate Solutions Award for its model for granting Swedish municipalities and county councils access to green funding.
|Total energy consumption (in buildings)||kWh||585,678||463,034||406,160|
|– of which, electricity||kWh||333,210||295,084||298,087|
|– of which, heating||kWh||252,468||167,950||108,073|
|Proportion of renewable energy in energy consumption of electricity||%||100||n/a||50|
|Change in electricity consumption compared to the preceding year||%||-13||-1||-8|
|Proportion of renewable energy in energy consumption for heating||%||100||n/a||95|
|Total office space||m2||2,217||2,217||1,498|
|Total energy consumption per square metre||kWh/m2||264||209||271|
|Total energy consumption per employee||kWh||6,436||5,447||5,207|
|Purchased office paper||Tonnes||0.5||0.8||1.3|
|– of which sustainability labelled paper (PEFC)||Tonnes||0.5||0.8||1.3|
|Proportion of sustainability labelled office paper, of total purchases||%||100||100||100|
|Total paper consumption per employee||Kilos||11.0||11.8||12.8|
|Paper recycling, incl. purchased and delivered paper||Tonnes||3.0||2.4||2.1|
|Total business travel||Km||887,488||1,319,646||1,081,226|
|Total business travel per employee||Km||9,753||15,525||13,862|
|Total air travel||Km||591,480||992,144||770,526|
|Rail travel in Sweden||Km||291,456||327,162||305,287|
|Total CO2 emissions from business travel||Tonnes||139.2||231.7||177.3|
|CO2 emissions from business travel, per employee||Tonnes||1.5||2.7||2.3|