CORRECTION – Fortum launches Green Finance Framework
FORTUM CORPORATION INVESTOR NEWS 22 JANUARY 2024 AT 16.05
Fortum corrects the investor news published on 22 January at 15:30 EET. Tiina Tuomela was mistakenly mentioned as the CEO but Tuomela is the Chief Financial Officer (CFO) of Fortum.
The corrected stock exchange release reads as below.
Fortum launches Green Finance Framework
Fortum has established a Green Finance Framework to further integrate the company’s sustainability ambitions into its financing. The framework supports execution of Fortum’s strategy to deliver clean energy reliably, drive decarbonisation in industries in the Nordics and transform and develop.
The Green Finance Framework allows Fortum to raise capital via green bonds and loans (Green Debt) to refinance and finance renewable energy and energy efficiency projects, and/or nuclear power projects. Fortum will always inform at issuance if it intends to finance any nuclear power generation projects with the proceeds of a given Green Debt instrument. Projects financed by Green Debt may include fixed assets, capital expenditures and/or operational expenditures (including R&D expenditures).
“We at Fortum want to drive the clean energy transition and we have the unique ability to deliver clean energy at large scale to customers and the Nordic energy system. Our actions are guided by our ambitious environmental targets. The Framework will enable us to allocate capital to existing assets needed to deliver reliable clean energy as well as green investments that drive decarbonisation and reduce emissions”, says Tiina Tuomela, CFO of Fortum.
In its new strategy launched in March 2023, Fortum brought forward its target to reach carbon neutrality (Scopes 1, 2, 3) already by 2030 and the goal to exit all coal already by the end of 2027. Fortum also set ambitious biodiversity targets and has committed to set emission reduction targets based on the climate science (SBTi 1.5°C).
Fortum is one of Europe’s cleanest power generators with 97% of the Group's EBITDA (last twelve months at end-September 2023) originating from the Group's Nordic 45 TWh outright power generation, which is based on CO2-free hydro and nuclear power. This business is complemented by onshore wind and solar, district heating and cooling operations, electricity retail and circular economy businesses. The Group’s specific emissions for power generation are very low, at the level of 25 gCO2/kWh.
Danske Bank has acted as an adviser on the establishment of Fortum’s Green Finance Framework and Sustainalytics has provided a second-party opinion confirming the framework’s alignment with the International Capital Market Association’s (ICMA) Green Bond Principles 2021 and the Green Loan Principles 2023 administered by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA).
Fortum’s Green Finance Framework and Sustainalytics second-party opinion are attached to this release as PDF file and are also available on the company’s web site at Credit facilities and rating | Fortum.
Further information:
Investors and analysts:
Jouni Huttunen, Vice President and Group Treasurer, tel. +358 50 452 4649
Ingela Ulfves, Vice President, Investor Relations and Financial Communications, tel. +358 40 515 1531
Rauno Tiihonen, Director Investor Relations, tel. +358 10 453 6150
Media:
Fortum News Desk, tel. +358 40 198 2843