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Green financing

Through sustainable financing, such as green bonds and loans, Skanska leverages the Group’s extensive green expertise and portfolio while diversifying the investor base. This enables the Group to increase investments in sustainable commercial and residential developments at a more rapid pace than can be achieved solely through internal capital.

Strategic ambition

To aid in driving advancements within green and reaching our strategic ambitions, Skanska-developed projects play an important role. Green financing enables us to continue investing in sustainable, profitable project developments at a more rapid pace than we can achieve solely through our own capital.

In 2018, Skanska issued a second round of green bonds, valued at SEK 1 billion, to supply financing for eligible Commercial Property and Residential Development projects. Strong demand for those bonds – which are listed on Nasdaq Sustainable Bond Market – demonstrated the keen interest in sustainable financing among investors. The Group’s first green bond issu¬ance was in 2014.

Leading endorsement

Skanska's Green Bond Framework is endorsed by the Center for International Climate and Environmental Research, a leading independent research center associated with the University of Oslo, Norway. A key aspect of our framework is that the environmental impact reporting is aligned with the United Nations' Sustainable Development Goals.

Pioneering methods

In 2017, Skanska Financial Services collaborated with four banks to establish a green credit line of about SEK 2 billion. This green revolving credit facility – the first in this form in the corporate sector – is a backup for Skanska's green bonds.

Also, with SEB bank we created the industry's first green construction credit. Furthermore, we have set up green loans to finance some of our commercial development projects.

Increasing green financing

At the end of 2018, Skanska’s central debt, managed by group function Skanska Financial Services, amounted to SEK 4.3 billion, of which 85 percent con¬sisted of green financing, including green bonds. Skanska’s ambition is to have the majority of its central financing from green and sustainable loans and bonds.

Green integral to our culture

More than 75 percent of the revenue from our Swedish and UK construction operations comes from green projects, as defined by the Skanska Color Palette™. Of our own project development operations, green projects account for more than 93 percent of the project value.

Through green bonds, enabling more sustainable developments

Skanska issued a second round of green bonds, valued at SEK 1 billion, in 2018 to provide financing for eligible Commercial and Residential Property Development projects. Under this frame¬work, all projects funded by these bonds must be aiming for upper levels of certification under any of these third-party systems: LEED, BREEAM, DGNB or the Nordic Swan Ecolabel (Svanen). The four Commercial Development projects that these green bonds will initially help fund all aim to exceed those green requirements by targeting the highest LEED levels, Platinum or Gold:

  • 2+U, Seattle, USA: 38-story office tower
  • Epic, Malmö, Sweden: 6-story office tower
  • Centrum Poludnie 2, Warsaw, Poland: Two buildings, 15- and six stories

Green revenue

Measured as percentage of total Construction revenue that is Green and Deep Green, according to the Skanska Color Palette™.

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Green market value

Measured as percentage of Commercial Property Development market value from Green and Deep Green projects, according to the Skanska Color Palette™.

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Green financing

Measured as percentage of total central debt1 that is Green, according to Green Bond Framework or other investor green demands.

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1 Funding managed by group function Skanska Financial Services.