Gasum’s Green Finance Framework Earns Top Rating for Sustainable Investments

Gasum’s Green Finance Framework Earns Top Rating for Sustainable Investments

(IN BRIEF) Gasum, a Nordic energy company, has received the top rating of Dark Green for its Green Finance Framework from independent ratings issuer Shades of Green. The framework governs the eligibility of projects for green loans in Gasum’s biogas operations. It aligns with industry standards and promotes waste utilization and circularity. Gasum’s commitment to sustainability is reflected in its governance practices, earning an Excellent score. This is Gasum’s second Green Finance Framework, and it highlights the company’s ongoing dedication to sustainable investments.

(PRESS RELEASE) ESPOO, 6-Jul-2023 — /EuropaWire/ — Gasum uses green loans for investments in its biogas business. Gasum’s strengths in the assessment were using waste as a resource and promoting circularity as well as sustainability as the foundation for governance.

Gasum has issued a new Green Finance Framework which has received the top rating of Dark Green from independent ratings issuer Shades of Green. Shades of Green is part of financial analytics and ratings group S&P Global. The Green Finance Framework is a document that defines the eligibility of certain projects and investments for green loans that Gasum uses for investing in its biogas operations.

The rankings are graded Light Green, Medium Green and Dark Green. Dark green is the highest rating and is allocated to projects and solutions that correspond to the long-term vision of a low-carbon and climate resilient future.

Gasum’s Green Finance Framework is part of the company’s financing strategy and it governs bond issuances as well as green loans. Shades of Green found Gasum’s framework to be aligned with the Green Bond Principles and Green Loan Principles.

Strength in waste and circularity

Eligible projects under Gasum’s Green Finance Framework were graded according to the “Shades of Green” methodology based on their environmental impacts and risks. The methodology gives transparent information on how well a green bond or loan aligns with a low-carbon resilient future.

Gasum’s Green Finance Framework allows financing granted under the framework to be invested in research, production, and distribution of biogas and biofertilisers, energy efficiency measures and pollution prevention and control measures. Funds under Gasum’s Green Finance Framework will exclusively be used for infrastructure related to biogas production and distribution.

Gasum’s strengths in the Shades of Green assessment were, in particular, that Gasum’s biogas is based on waste and circularity, thus avoiding potential issues related to competing land use for energy crops. Shades of Green was impressed by Gasum’s use of certification schemes on both sourcing and production aspects, its active research agenda, as well as efforts to minimise fugitive emissions – all of which are intended to lower emissions further.

Sustainability rooted in governance

Shades of Green also gives a score for governance and has given Gasum a governance score of Excellent. In its reasoning Shades of Green states that sustainability is solidly rooted in Gasum’s corporate governance: Gasum has a long history of sustainability reporting and robust processes for emissions reporting and other environmental, social and governance aspects in line with legislation and standards.

Gasum reports on all material sources of Scope 3 emissions, including downstream sale of products. This and the external annual verification of all renewable gas GHG calculations is evidence of Gasum’s commitment to robustness and transparency on emissions reporting.

This is Gasum’s second Green Finance Framework – the first was issued in 2019 and also received a Dark Green shading from CICERO Shades of Green. Gasum has raised loans totalling EUR 152 million under the previous framework.

Read more:

Media Contact:

Olga Väisänen
Vice President, Communications and Sustainability
tel. +358 40 554 0578

Liisa Leeve
Communications Manager
tel. +358 40 595 2081

SOURCE: Gasum Ltd


Follow EuropaWire on Google News

Comments are closed.