The Green Financing 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 2030. 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 the increased use of renewable energy at Electrolux factories, for example through the installation of solar panels.
To enable investors and other stakeholders to follow the development of Electrolux green financing issuance and to get insight into how the green financing proceeds are used, Electrolux will provide an annual Green Financing Impact Report.
The Electrolux Green Financing Framework dated September 2022 is the latest update.
To be eligible for financing from Electrolux green financing proceeds, projects must fall within any one of the categories listed below.
- Be climate neutral and drive clean and resource-efficient operations
– which relates to reducing the impact from the Group’s operations on the environment related to energy, water, waste and emissions.
- Lead in energy and resource-efficient solutions
– which relates to the reduced environmental impact that results from the use of products.
- Offer circular products and business solutions
– which relates to improving the circularity 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.
- Supporting the UN Sustainable Development Goals and Climate Goals
– 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 International Capital Market Association Green Bond Principles 2021 as well as the Loan Market Association and Asian Pacific Loan Market Association Green Loan Principles 2021, with projects eligible for funding defined to support the UN Sustainable Development Goals and the Paris climate agreement. The framework has been independently evaluated by CICERO Shades of Green.