Hybrit pilot plant. Photo: SSAB
SSAB will be able to issue sustainability bonds that provide the company with a direct link to stakeholders in order to communicate one of its most important sustainability goals.
"With its renewed sustainability target SSAB is highlighting a material and ambitious target to revolutionize iron- and steelmaking to be the world’s first steel company to deliver iron ore-based fossil free steel. SSAB’s sustainability-linked finance framework is creating both transparency and a clear purpose for SSAB to use in financing opportunities", says Fredrik von Platen, sustainable Finance Specialist, DCM (Debt Capital Markets).
SSAB currently accounts for around 10% of total carbon dioxide emissions in Sweden. The company has undertaken to cut emissions by 35% by 2032 and the goal is to be fossil-free by 2045. Important factors in achieving this are the joint venture HYBRIT together with LKAB and Vattenfall for establishing fossil-free steel production, and in gradually replacing existing blast furnaces with arc furnaces.
The framework is designed in accordance with the guidelines that ICMA - International Capital Markets Association, launched last year.
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New framework to finance sustainable transition - SSAB