Helsingborg launches unique sustainable bond framework

As the first municipality in Sweden, Helsingborg is launching a framework for sustainable bonds that includes both environmental and social categories

The City of Helsingborg's new framework offers a concrete tool for international and national actors to invest sustainably from a broad perspective. These include investments in renewable energy sources, waste solutions and green transport, but also about investing in social projects that raise the standard of living in the city. The framework is a collaboration between the City of Helsingborg and the municipally owned companies responsible for the port of Helsingborg (Helsingborgs hamn), the public housing agency (Helsingborgshem AB), the recycling and waste management agency (NSR) and energy company (Öresundskraft AB).

The first sustainable bond issued under the new framework is for SEK 500 million and was purchased by Nordea Asset Management.

"We are delighted to once again be part of the City of Helsingborg's innovative work in sustainable finance. We have previously supported the municipality's efforts in climate change mitigation through their sustainability-linked bond and now see it as a positive step to deepen our collaboration by supporting the municipality’s green and social investments and assets, says Per-Erik Grahn, portfolio manager at Nordea Asset Management.”

Lars Thunberg (KD) is a municipal commissioner, and chairman of the committee for quality of life, which coordinates the city's work with sustainable development. He sees the new bond as an important piece of the puzzle to achieve the city's long-term goals.

"It is incredibly gratifying and a validation of the innovative work we have been conducting in the city. As a Swedish municipality we are particularly proud to be the first one to include social categories in the bond. To achieve the city's goals, we need new thinking, and the framework will be an important piece of the puzzle in that work moving ahead," says Lars Thunberg.

With the framework, the city of Helsingborg has also raised the level of ambition by broadening the scope of traditional green categories, including green buildings. To cover the majority of emissions for a building's value chain, the city combines a requirement for energy performance with a requirement for material used during construction. The framework also contains climate adaptation measures that include raising the ground of Helsingborg's port to adapt port operations for future climate impact.

Helsingborg intends to consistently finance future initiatives and activities rather than investments already completed.

"In 2022, Helsingborg was recognized as one of Europe's 100 climate-smart cities by the EU. This award carries an obligation. If we are to achieve climate neutrality by 2030, we must further accelerate our efforts. Therefore, it is crucial that we have this framework in place now," says Henrik Frindberg, Environmental Director for the City of Helsingborg.

The framework demands annual reporting of how the money was used and the achieved sustainability impacts. The transparency at the project level complements previous frameworks that focus more on a clear end goal for climate change.

"Cities worldwide have a crucial role to play in driving the transition towards a more sustainable future. I hope that our framework can act as an inspiration to encourage investments leading to a more sustainable society", says Marcus Nilsson, Financial Director of the City of Helsingborg.

The framework has been established in collaboration with Nordea, based on ICMA’s Sustainability Bond Principles and has received an external Second Party Opinion from Sustainalytics.

For questions, please contact:
Niklas Bäckström, Controller, Helsingborgs stad
Phone: +46 42 10 45 77.