The International Capital Market Association (ICMA) is a global organisation, working for well-functioning, international capital markets. Its members consist of banks, asset managers, and other financial institutions – with SEB being the only Nordic commercial bank represented in the organisation.
“We became part of ICMA due to our pioneering role in sustainable finance, helping the World Bank issue the first ever institutional green bond in 2007/2008. This issuance paved way for ICMA’s Green Bond Principles in 2014. Since then, we have held a seat in the Executive Committee for the Green Bond Principles”, explains SEB’s current representative Fredrik von Platen, Sustainable Finance Specialist at the bank.
Von Platen underlines how the platform strengthens SEB’s ability to contribute to a positive development.
“Being included in this context gives us a great opportunity to influence how the international capital markets approach sustainable financing and also to enable a forward movement on important issues”, von Platen says.
Together with the other members of the organisation’s Executive Committee for the Green Bond Principles, von Platen has been responsible for developing guidelines for bonds related to nature and biodiversity issues, social issues, and enablement.
The last of the three – enablement – entails corporates who indirectly contribute to climate benefits in the value chain. This could be, for example, mining for metals that are crucial for electric vehicles, or telecommunication networks that enable energy efficiency for smart grids.
“The guidelines launched on 26 June, and this means that there will now be an even more clear route forward when issuing bonds related to nature and biodiversity, social issues, and enablement. This, in turn, will likely serve to increase the activity within these areas, which we are more than happy to contribute to”, says Isabelle Tibbelin, a sustainable finance advisor who has assisted Fredrik von Platen in developing input to the guidelines.
She highlights that there is plenty to be gained from employing the Green Bond Principles in connection with seeking financing by issuing bonds.
“By adhering to the Green Bond Principles, corporates can, for example, get access to a broader investor base and reduce the transaction risk, since green bonds are more resilient in volatile markets. Potentially they can also lower their financing costs, due to a higher demand for green bonds than regular bonds”, Tibbelin says.
Read more about the updated Green Bond Principles (icmagroup.org)