Hydro's "Green Financing Framework" supports its mission toward low-carbon economy

Hydro’s green and sustainability-linked financing framework has been created as a part of the company’s dedication to sustainability. The framework enables Hydro to provide green financial products and financing instruments connected to its aims and efforts in sustainability.

The "Green Financing Framework," aims to raise money to support Hydro's environmentally friendly business ventures and the inherent ability of Hydro's products to help the shift to a low-carbon economy. This framework has been designed to assist the issuing of green financing instruments and financial products that are linked to sustainability. It also has a second-party opinion from CICERO Shades of Green.

The Green Bond Principles (GBP) published in June 2021 by the International Capital Market Association (ICMA) and the Green Loan Principles (GLP) 2021 of the Loan Market Association are aligned with this Framework, which defines the investments eligible for financing as Green Financing Instruments issued by Hydro.

“The sustainability linked financing framework is an important milestone to improve our access to capital, support transparent reporting and drive a cost of capital advantage, as we deliver on our sustainability ambitions. Going forward, we will link two key performance indicators (KPIs) to the framework, the absolute reduction of Scope 1 & 2 GHG emissions and the increased capacity for recycling of aluminium post-consumer scrap,” said Executive Vice President and Chief Financial Officer, Pål Kildemo.

Hydro is dedicated to paving the road for a more sustainable future and building more viable communities via the creative and effective conversion of natural resources into goods and solutions. The shift to a green economy will be difficult and demand significant global investments. On the other side, the shift to a greener economy will also bring many possibilities. Hydro is resolved to take advantage of opportunities where its capabilities align with global megatrends so that Hydro can play a leading role in the transition to a greener economy.