Green Finance at Metsä Group
Sustainability as an essential part of Metsä Group’s strategy steers our long-term business development. Sustainability evaluation is always part of the relevant development, investment and financing planning.
Metsä Group’s Green Finance Framework integrates environment, sustainability and climate change mitigation to the Group’s investments and related financing activities. The framework is based on and line with the Group’s strategy and the strategic sustainability objectives for 2030.
Eligible Green Finance Categories
Our Green Finance Framework covers the whole value chain from sustainably managed Northern forests to modern production technologies and to current and new recyclable and carbon-storing bioproducts. To be eligible as a Green Finance set, the projects financed must fall within one or more of the categories defined by the GBP. The categories relevant and material to Metsä Group have been defined based on the Group’s strategy, strategic sustainability 2030 objectives and materiality analysis.
The uses of proceeds under the framework will focus on:
- ensuring sustainable forest management practices and safeguarding biodiversity based on credible forest management schemes PEFC and FSC
- improving resource-efficiency and utilization of the production side streams
- increasing the share of renewable energy and improving energy efficiency
- preventing and/or decreasing emissions to air and water
- reducing the use of process water
- taking circular and bioeconomy innovations from R&D phase to production and full commercialisation
Independent Second Party Opinion
An independent ESG (environmental and social responsibility and governance) and corporate governance research, rating and analytics corporation Sustainalytic has made a review and given an external second party opinion (SPO) on the Framework. Sustainalytics is of the opinion that Metsä Group’s investments into the development of circular bioproducts, modern production technology and efficient processes are credible and impactful. In addition, Metsä Group supports with its operations the United Nations’ Sustainable Development Goals (the UN SDGs) in various ways. The SPO can be read here.
Metsä Group’s Green Finance Framework is based on and aligned with the 2018 version of the Green Bond Principles (GBP) published by the International Capital Markets Association (ICMA) and the 2018 version of the Green Loan Principles (GLP) published by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA). Internally, the sustainability evaluation of each relevant investment plan is conducted by the Sustainable Funding Committee (SFC), headed by the Group’s CFO.
Metsä Group is committed to transparent and reliable reporting and communication on the projects financed within the scope of the Framework on www.metsagroup.com/gff and in the Group’s annual Sustainability Report.