Volvo Green Finance

Volvo Green Finance

Volvo Group has launched a Green Finance Framework for the financing of investments and projects in the area of clean transportation. The framework is classified as Dark Green by the Center for International Climate and Environmental Research (CICERO Shades of Green). 

"Sustainability is a part of our DNA, ranging from safety, operations, purchasing, durability and quality in our products to constant fuel-efficiency improvements in our vehicles and machines. We take a holistic view on sustainability and are very pleased to show that we are supporting this transition with every part of our organization," says Martin Lundstedt, President and CEO of the Volvo Group.

"Launching the green financing framework is a way of acknowledging that the debt market will play an important role in achieving the goals of the Paris Agreement by channeling funds towards projects that will have profound impact on reducing CO2 emissions," says Jan Ytterberg, Volvo Group CFO. 

Green financing is a way for the Volvo Group to connect its sustainable transport solutions and strategy with its funding. It encourages further stakeholder engagement and a deepened dialogue with investors, shareholders, customers and suppliers alike on how sustainability is integrated into the Volvo Group’s business model. At the same time, green financing may enable the Volvo Group to attract an extended set of investors in its funding. 

Volvo Green Finance Framework

As part of our commitment to sustainability, this Green Finance Framework (the Framework) has been developed. The structure of the Framework is in line with the four key pillars of the ICMA Green Bond Principles (GBP) and LMA and APLMA Green Loan Principles (GLP), which are as follows:

1. Use of proceeds

2. Process for project evaluation and selection

3. Management of proceeds

4. Reporting

The Volvo Group intends to follow market practice in relation to Green Bonds and Loans and will work to reflect best practice developments in this space, including those that arise as the EU Taxonomy and the EU Green Bond Standard gain further traction. Our Green Finance Framework may be amended or updated from time to time to reflect any such changes in market practice.

Verification

To ensure alignment with national and international guidelines, the Volvo Group has obtained an independent external third-party opinion on its Green Finance Framework from CICERO Shades of Green. The opinion can be found below.

Download the opinion(PDF, 0.4 MB)

The Green Finance Investor Report

The Volvo Group will provide and make available an investor report on its Green Asset Portfolio annually (a Green Finance Investor Report). The Green Finance Investor Report will cover allocation and impact reporting, as detailed in the Framework.