Green financing

Green financing is a way for us to articulate this belief in our funding and we invite investors to support the transition to a more sustainable energy system.

Vattenfall’s Green Financing Framework follows the ICMA 2021 Green Bond Principles and the Framework has received the highest rating, “Dark Green”, in a Second Opinion by CICERO. Vattenfall will provide a Green Financing Impact Report on at least an annual basis. Vattenfall intends to report on quantitative impact indicators, where feasible and provided relevant data is available.

Use of proceeds

Vattenfall intends to allocate an amount at least equal to the incremental net proceeds of Vattenfall green financing to a portfolio of eligible green projects. Vattenfall will not finance fossil energy production, nuclear energy generation, or environmentally harmful resource extraction (such as rare-earth elements or fossil fuels) with the proceeds from Green Financing.

The eligible categories are the following:
a) Renewable energy
Such as wind, solar and geothermal energy, biomass and hydrogen.

b) Transmission and distribution of electricity
Construction, reconstruction and upgrades of transmission and distribution systems that transport low carbon electricity generation.

c) Energy efficiency
For example, smart grids/meters, district heating/cooling, and power to heat through heat pumps.

d) Clean transportation
For instance, electric charging points, electricity grid connection and hydrogen fuelling stations.

Reporting

In our reporting, we want to be as open and transparent as possible. The Green Financing reporting is in line with the EU Taxonomy and will include both details on the portfolio of eligible projects and the volume of the proceeds allocated to it, as well as the impact of the projects, primarily in terms of CO₂ reduction.

Additional supporting information can be found in our Annual and sustainability report. Our sustainability reporting is in accordance with the Global Reporting Initiative’s (GRI) Guidelines and we disclose our climate-related risks and opportunities in accordance with the recommendations of the Task Force on Climate related Financial Disclosures (TCFD).