Elenia is the first Nordic company to adopt a green finance framework aligned with the EU Green Bond standard

Elenia is the first Nordic company to publish a green finance framework aligned with the new European EU Green Bond standard. The standard is the most advanced and ambitious framework in the financial markets in terms of asset allocation, reporting accuracy and external verification.

By adopting the EU Green Bond Standard, Elenia is ensuring investors’ needs for transparency and reliability of green financing. The standard, developed by the European Commission and approved by the European Parliament, entered into force in December 2024. It is supervised by the European Securities and Markets Authority.

“As a forerunner in network services, we want Elenia to also lead the way in the introduction of the EU Green Bond standard and ensure that investors see Elenia's bonds as attractive investments. We believe this will increase demand for Elenia's bonds and enable us affordable funding. This is in line with the renewal of our credit facilities two years ago, when pricing of the facilities was linked to Elenia's sustainability targets” says Tommi Valento, CFO of Elenia.

Elenia's investments meet the requirements of the EU taxonomy

With the introduction of the framework aligned with the EU Green Bond Standard, Elenia can issue bonds under its EMTN program that meet the demanding requirements of the EU taxonomy.

The EU taxonomy is a classification system for sustainable economic activities, which includes economic activities that significantly contribute to climate and environmental objectives and their assessment criteria. The proceeds from the issuance of green bonds complying with the EU Green Bond Standard must be invested in economic activities that comply with the taxonomy.

In 2024, 97.5% of Elenia's revenue, 98.7% of capex and 77.9% of operating expenses were aligned with the taxonomy.

Elenia's green finance framework receives the highest rating

S&P Global Ratings has provided an independent external assessment of Elenia's framework. In addition to the requirements of the EU Green Bond standard, S&P's report includes an assessment of Elenia's ability to meet the requirements of the EU taxonomy, including not only the Technical Screening Criteria but also the "Do No Significant Harm" principle and Minimum Safeguards. S&P has granted the framework the highest Dark Green rating based on the environmental objectives and impact of the funds allocated in accordance with the framework.

In addition to the EU Green Bond standard, Elenia's green finance framework is aligned with the green bond principles of ICMA.

“Corporate responsibility and sustainability are at the core of our operations and through partnerships they also cover our value chain. At a societal level, our sustainability is reflected in strengthening the security of electricity supply and continuation of operations together with enabling green transition" Valento emphasizes.

”As the electrification of heating, industries and transportation progresses, Finland needs a reliable electricity grid and network services with flexible solutions alongside growing renewable electricity production. This will require investments of 2.4 billion euro from Elenia by 2036, and therefore the availability of affordable funding is critically important. The green finance framework is an important step for us as we enable the electrification of society” Valento summarizes.

Elenia’s green finance framework related material is available on Elenia's website at www.elenia.fi/en/investors/green-financing. SEB has acted as Elenia's sustainability advisor in the framework.