Finland’s OP sets up green bond framework

Finland’s OP Financial Group has established a green bond framework taking in sectors such as renewable energy, energy efficiency and sustainable land use.

The Finnish banking group published its framework today (Friday).

“OP Financial Group’s mission is to create sustainable prosperity, security and wellbeing for its owner-customers and in its operating region by means of its joint values, strong capital base and efficiency,” the group says in its framework. “By issuing green bonds, OP Financial Group intends to support one of OP’s core values – responsibility.”

The framework has a second party opinion from Sustainalytics, which confirmed the framework’s alignment with the Green Bond Principles. Sustainalytics said the framework is credible, robust and impactful.

“Sustainalytics considers the range of eligible categories to have positive environmental or social impacts and to advance the UN Sustainable Development Agenda,” it said.

OP has set out six categories for its framework: renewable energy, including hydro and wind power; energy efficiency; green buildings; pollution prevention and control; sustainable land use, through sustainable forestry; and clean transportation.

Green bonds may be issued off the new programme by OP Corporate Bank or other issuing entities of the group.

A spokesperson for OP said he was unable to comment further on plans for the green bond framework as it is in a silent period ahead of announcing third quarter results on Wednesday (31 October). No deal mandate associated with the framework has been announced yet.

Photo: OP headquarters, Vallila, Helsinki; Credit: Arto Alanenpää/Wikimedia Commons