The Volvo Group Launches Green Finance Framework
Volvo Group launches a Green Finance Framework for the financing of investments and projects in the area of clean transportation. The framework is classified as Dark Green by the Center for International Climate and Environmental Research (CICERO Shades of Green).
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“Sustainability is a part of our DNA, ranging from safety, operations, purchasing, durability and quality in our products to constant fuel-efficiency improvements in our vehicles and machines. We take a holistic view on sustainability and are very pleased to show that we are supporting this transition with every part of our organization,” says Martin Lundstedt, President and CEO of the Volvo Group.
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The framework enables the Volvo Group to issue green bonds and other green financial instruments and allows the company to identify, select, manage and report on eligible projects and assets in line with International Capital Market Association Green Bond Principles.
The Green Finance Framework has been subject to an independent external assessment by CICERO Shades of Green, which has classified the green financing framework as Dark Green – their highest level. The framework will be used for funding through e.g. green bonds, green commercial papers and green loans. The funds will be earmarked to projects in areas such as research and development and manufacturing of electric vehicles, machines and engines with zero tailpipe emissions. Funds will also be used by Volvo Financial Services to offer green loans to customers who buy the Group’s electric products.
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“Launching the green financing framework is a way of acknowledging that the debt market will play an important role in achieving the goals of the Paris Agreement by channeling funds towards projects that will have profound impact on reducing CO2 emissions,” says Jan Ytterberg, Volvo Group CFO.