Kommuninvest has improved its ESG rating from Sustainalytics. In the latest evaluation Kommuninvest received an ESG Risk Rating score of 9.1, considered “negligible” according to Sustainalytics. This makes Kommuninvest part of the group of financial institutions with the lowest ESG risk rating from Sustainalytics.
Christian Ragnartz, Head of Debt Management at Kommuninvest, comments:
- Investors are placing more stringent demands on issuers related to ESG factors, and the requirements are gradually increasing. We are pleased with this external review highlighting Kommuninvest’s low ESG exposure and strong management. It also confirms the ratings received from other leading ESG ratings institutions.
Kommuninvest's role is to finance Swedish local government investments, with an emphasis on investments in new housing, expanded infrastructure, hospitals and schools. With a loan portfolio exceeding SEK 350 billion, Kommuninvest is the largest lender to Sweden’s municipalities and regions. Kommuninvest is also Sweden's largest issuer of green bonds, where the proceeds are earmarked for environmental and climate-related investments.
Kommuninvest has been reviewed according to Sustainalytics’ new ESG Risk Rating methodology, which to a further extent than the former ESG Rating methodology captures financial materiality aspects, the degree to which a company’s enterprise value is exposed to material ESG issues. The risk rating score is group in five categories, ranging from Negligible (score 0-10) to Severe (40+).
The awarded ESG score placed Kommuninvest 12th out of 74 development banks and 12th out of 943 banks reviewed. Less than 18 percent of development banks and 2 percent of banks are considered to be at negligible risk of material financial impacts driven by ESG factors.
Christian Ragnartz, Head of Debt Management, tel: +46 10 470 87 06, firstname.lastname@example.org
Björn Bergstrand, Head of Sustainability, tel: +46 70 886 94 76, email: email@example.com
 Kommuninvest's previous ESG Rating from Sustainalytics was 51 on a scale from 0-100, which placed Kommuninvest in the category "Average".
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together, we get better loan terms than each one individually. Since its inception in 1986, the Kommuninvest collaboration has helped lower the local government sector’s borrowing costs by many billion kronor. Currently, 290 municipalities and counties/regions are members of this voluntary cooperation. With total assets exceeding SEK 450 billion (USD ~47 billion), Kommuninvest is the largest lender to the local government sector and one of the ten largest credit institutions in Sweden. The head office is located in Örebro.