The Green Bond Framework helps Electrolux to fund climate investments and other environmental initiatives.
The proceeds will be used to finance or refinance projects covered by the environmental areas of the Electrolux sustainability framework, For the Better. This may include investments in R&D to improve the energy or water efficiency of appliances, development of recycled materials, reduced use of refrigerants with high greenhouse warming potential, and increased use of renewable energy at Electrolux factories, for example through installation of solar panels.
To enable investors and other stakeholders to follow the development of Electrolux green bond issuance and to get insight into how the green bond proceeds are used, Electrolux will provide an annual Green Bond Impact Report.
To be eligible for financing from Electrolux Green Bond proceeds, projects must fall within any one of the categories listed below.
- Improve product performance and efficiency
– which relates to reduce environmental impact that results from the use of products
- Make better use of resources
– which relates to improving the efficiency of materials that Electrolux uses and increasing the use of recycled materials
- Eliminate harmful materials
– which relates to phasing out substances that could have a negative impact on health and/or the environment
- Achieve more with less
– which relates to reducing the impact from the Group’s operations on the environment related to energy, water, waste and emissions
- Climate targets
– which relates to reducing greenhouse gases produced by the Group through the generation of renewable energy
The framework has been developed in alignment with the Green Bond Principles 2018, with projects eligible for funding defined to support the UN’s Sustainable Development Goals and the Paris Climate Agreement. The framework has been independently evaluated by the Center for International Climate Research (CICERO).