The first Green Bond worth EUR 500 million
Sustainability

Neste's Green Finance Framework and first EUR 500 million green bond

In March 2021, we established a Green Finance Framework to further integrate our sustainability ambitions into our financing. Under this framework, we also issued a EUR 500 million 7-year green bond, the first of its kind for Neste, to provide investors the opportunity to support our objective to mitigate climate change globally by reducing greenhouse gas emissions through our renewable and circular solutions.

Green Finance Framework

The Green Finance Framework is designed to support financing or refinancing Eligible Assets and Projects, i.e. investments into the development, operations, maintenance and expansion of our renewable and circular solutions with the objective to mitigate climate change globally by reducing greenhouse gas (GHG) emissions. The environmental objectives targeted with proceeds allocated relate to the reduction of the carbon emissions by the expansion and development of Neste’s production capacity for renewable products, which provide a sustainable and direct drop-in alternative to fossil fuels and products.

Neste has set ambitious climate commitments:  

  • help our customers reduce their GHG emissions with our renewable and circular solutions by at least 20 million tons of CO2 eq annually by 2030
  • reduce our production (Scope 1 & 2*) emissions by 50% by 2030 compared to 2019 and reach carbon neutral production by 2035
  • lead the transformation towards a carbon neutral value chain by 2040, reduce the use phase emission intensity** of sold products by 50% by 2040 compared to 2020, and work with our suppliers and partners to reduce emissions across the entire value chain (Scope 3*).

In addition to the newly established Green Finance Framework, one example of our commitment to these targets is the EUR 1.2 billion multi-currency revolving credit facility signed in December 2019 where the margin will be adjusted based on Neste’s progress to meet its GHG emission reduction target.

For more than ten years, Neste has steadily increased the volume of its renewable products. Today, the company has the capacity to produce 3.3 million tons of renewable products annually at its refineries in Finland, the Netherlands and Singapore. To secure future growth, Neste is expanding its global feedstock and production platform for renewables. Neste’s annual production capacity will increase to 4.5 million tons of renewables as the extension of our Singapore refinery comes on stream at the end of the first quarter in 2023. Together with our Rotterdam sustainable aviation fuel (SAF) optionality project, we expect to achieve a SAF production capability of 1.5 million tons annually by the end of 2023.

Read more about the Green Finance Framework.

Neste’s first green bond worth EUR 500 million

In March 2021, Neste issued its first ever EUR 500 million green bond. The 7-year bond carries a coupon of 0.75 per cent. The bond offering was allocated to approximately 120 investors. Neste Corporation will apply for the listing of the bond on the official list of sustainable bonds of Nasdaq Helsinki Ltd. The bond represents the first issuance under the established Green Finance Framework. 

The proceeds from the issue will be used in accordance with the Neste Corporation’s Green Finance Framework to for example investments into the development, operations, maintenance and expansion of the company’s renewable and circular solutions with the objective to mitigate climate change globally by reducing greenhouse gas emissions.

With the issuance of the first green bond, Neste is providing investors the opportunity to support our objective to mitigate climate change globally by reducing GHG  emissions through its renewable and circular solutions.

Read more about the green bond.

*) Scope 1, 2 & 3 emissions as defined by the Greenhouse Gas Protocol. Scope 1 and 2 cover the emissions related to our own production. Scope 3 includes relevant emissions from the value chain. For Neste, the key Scope 3 categories are the use of sold products, purchased goods & services and raw material & product transport.

**) Use phase emission intensity is calculated by dividing the emissions from the use of products sold by Neste with the total amount of sold energy (gCO2e/MJ)

Credits:

Neste,

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