Neste publishes Green Finance Framework
Neste has established a Green Finance Framework to further integrate the company’s sustainability ambitions into its financing.
The Green Finance Framework is designed to support financing or refinancing eligible assets and projects, in other words investments into the development, operations, maintenance and expansion of its renewable and circular solutions with the objective to mitigate climate change globally by reducing greenhouse gas emissions. The environmental objectives targeted with proceeds allocated relate to the reduction of the carbon emissions by the expansion and development of Neste’s production capacity for renewable products, which provide a sustainable and direct drop-in alternative to fossil fuels and products.
“We have made two climate commitments,” said Mika Rydman, vice president and group treasurer for Neste. “We have committed to help our customers reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons of CO2-equivalent annually by 2030, and to reach carbon-neutral production (scope 1 and 2) by 2035. In addition to the newly established Green Finance Framework, one example of our commitment to these targets is the 1.2 billion euro multi-currency revolving credit facility signed in December 2019 where the margin will be adjusted based on Neste’s progress to meet its greenhouse gas emission reduction target.”
For more than 10 years, Neste has steadily increased the volume of its renewable products. Today, the company has the capacity to produce 3.2 million tons of renewable products annually at its refineries in Singapore, Rotterdam and Porvoo, Finland. To secure future growth, Neste is expanding its global feedstock and production platform for renewables. With its expansion in Singapore, Neste is bringing the total global renewable product capacity to 4.5 million tons per year in 2023.
Nordea acted as an adviser on the establishment of the Green Finance Framework and green finance evaluation expert CICERO Shades of Green had a role as an independent second-opinion provider.