The Stena Metall Group has issued in total three green bonds, of which two are currently active. All bonds are connected to the Group’s green bond framework, which is ranked “dark green” by the independent analysis institute Cicero.
The green bonds offer opportunities to invest in projects with a clear sustainability profile. The funds are targeted to finance and re-finance projects within the Stena Metall Group that contribute to strengthening the circular transition and ambitious sustainability agenda. The eligible investments under the green bond framework will be followed up and the green bond reports will be published yearly on this website.
Stena Metall Group's third Green Bond was issued on May 10, 2023. The amount issued was SEK 1 billion, which will be used to finance and refinance projects within the Group that aims to facilitate the transition to a more circular economy. This bond was a re-financing of the first green bond that was issued in 2018, which financed investments in Stena Recycling’s flagship facility Stena Nordic Recycling Center in Halmstad, Sweden. The 2018 bond was widely considered to be the world’s first circularity themed green bond.
The framework developed for Stena Metall Group's 2023-2028 green bond is the same as for the 2022-2027 green bond. The proceeds from this bond will be used more broadly for projects with a clear environmental benefit, specifically projects which contribute to increased circularity, moving more material upward the waste hierarchy, or otherwise contribute to reducing the organization's climate footprint, including the Stena Nordic Recycling Center in Halmstad, Sweden.
Eligible investment projects in accordance with the green framework are limited to projects within the subsidiaries in the Group that have circularity integrated into the core business. These subsidiaries are the Stena Recycling companies, and Stena Aluminium. The majority of the funding is expected to be allocated to operations within Stena Recycling, which is the Group's largest subsidiary both in terms of turnover and number of employees. The allocation will mainly be dedicated to investments in existing facilities or to acquisitions, in both cases with the aim to strengthen the capacity for circular processes and improved recycling rates.
GREEN BOND 2023 – 2028 FRAMEWORK
Both of Stena Metall Group’s active green bonds, which was issued under the same Green Bond Framework received dark green rating by the rating-institute Cicero. Extract of the summary:
“Based on the project category shadings detailed below, and consideration of environmental ambitions and governance structure reflected in Stena Metall's green bond framework, we rate the framework CICERO dark green./…/ Stena Metall plays an important role in improving the carbon footprint of industries through its business model of supplying these with recycled raw materials /…/ The company has a clear sustainability profile and forward-looking ambitions.”
Stena Metall Group's second Green Bond was issued on April 27, 2022. The amount issued was SEK 1 billion, which will be used to finance and refinance projects within the Group that aims to facilitate the transition to a more circular economy.
The framework developed for Stena Metall Group's second green bond has a wider scope than the first one, which was aimed exclusively at financing a single facility, the Stena Nordic Recycling Center in Halmstad, Sweden. The second bond will be used more broadly for projects with a clear environmental benefit, specifically projects which contribute to increased circularity, moving more material upwards the waste hierarchy, or otherwise contribute to reducing the organization's climate footprint.
Eligible investment projects in accordance with the green framework are limited to projects within the subsidiaries in the Group that have circularity integrated into the core business. These subsidiaries are the Stena Recycling companies, and Stena Aluminium. The majority of the funding is expected to be allocated to operations within Stena Recycling, which is the Group's largest subsidiary both in terms of turnover and number of employees. The allocation will mainly be dedicated to investments in existing facilities or to acquisitions, in both cases with the aim to strengthen the capacity for circular processes and improved recycling rates.
Here you can learn more about our green bond 2023-2028 and our green bond 2022-2027.
In its 2022 report regarding the global green bond market, analysis institute Cicero listed Stena Metall Group's green bond 2022 – 2027 among its best practice examples. Stena Metall Group is acknowledged for its solutions related to efficient resource management and circularity.
