NKT is dedicated to connecting a greener world by enabling sustainable energy transmission through high-quality power cable technology. With the announcement of the Green Finance Framework, NKT is taking yet another important step on its sustainability journey.
“Sustainability is a key strategic priority for NKT. We enable the green transition of societies with our power cable solutions and have worked to reduce the carbon footprints of our cables e.g. by switching to green electricity in our production and recycling 100% of our scrap. Having our sustainability strategy linked to our financing framework is yet another demonstration of our strong commitment to the fight against climate change,” says NKT CFO, Line Andrea Fandrup.
The Green Finance Framework enables NKT to finance eligible assets and expenditures with distinct sustainable benefits. These may include, but will not be limited to, capital expenditures such as production machinery and equipment, technology and IT, buildings and R&D as well as operational expenditures such as staff cost, repairs and maintenance, energy and utilities, transportation and administration relating to the production of power cables used to connect renewable power generation to areas of consumption.
The Green Finance Framework has been developed together with Danske Bank, Nordea and Nykredit and is based on the 2021 versions of the International Capital Markets Association’s (ICMA) Green Bond Principles and Green Loan Principles, alongside the EU Taxonomy and the anticipated EU Green Bond Standard.
To confirm the transparency and robustness of the Green Finance Framework, NKT has engaged CICERO Shades of Green to act as an external reviewer, by way of a Second Party Opinion. CICERO Shades of Green has awarded NKT’s Green Finance Framework a Medium Green shading with a governance score of Excellent.