Pulp and paper technologies provider Valmet has announced the establishment of the Green Finance Framework.
The initiative is aimed at integrating the company's sustainability goals with its financing strategies by issuing green debt instruments.
The Green Finance Framework is structured to support the financing or refinancing of eligible assets and expenditures.
These are specifically targeted towards two environmental objectives, including the promotion of a circular economy and the mitigation of climate change.
Valmet's framework categorises eligible assets and expenditures into two main areas: services that extend the lifespan of its products in customer use, and solutions that significantly reduce greenhouse gas emissions, aiding customers in their transition to greener operations.
Valmet CFO Katri Hokkanen said: “Our technologies and services enable Valmet’s customers to convert renewable resources into sustainable products, reduce greenhouse gas emissions and promote circularity. The Green Finance Framework supports us in this mission and enables us to allocate capital to activities that enhance the green transition.”
To ensure the proper allocation of green financing, the company has formed a green finance committee tasked with directing funds to activities that meet the framework's eligibility criteria.
Valmet also plans to issue an annual Green Finance Report, which will detail the allocation of proceeds and provide impact reporting yearly as long as there are outstanding green financings or until proceeds are completely allocated.
The Green Finance Framework has been validated by ISS ESG, which provided an independent second-party opinion confirming the framework's alignment with the Green Loan Principles 2023 and the Green Bond Principles 2021.
Nordea served as an advisor during the establishment of the framework.
Headquartered in Espoo, Finland, Valmet provides process technologies, automation, and services for the pulp, paper, and energy industries.
Last month, it announced the commencement of negotiations as it aimed to restructure its Services and Paper divisions within the Europe, Middle East, and Africa region, and corporate functions.
