Green Financing Framework
The Green Financing Framework is an important part of Klappir’s sustainability strategy. This applies to Klappir's internal operations and stakeholders as well as to the sustainable business environment and communities that Klappir affects with its products and services.
Klappir has worked with global sustainability advisor Ernst & Young (EY) to develop the Green Financing Framework and ISS-ESG has provided a second party opinion (SPO) to the Framework. An independent assurance provider will provide limited assurance on the annual report for the purposes of this Framework.
This Green Financing Framework is an important part of Klappir’s sustainability strategy moving forward. This applies both to Klappir's internal operations, owners and the sustainable business environment and community that Klappir influences through its products and services.
This Green Financing Framework is based on existing international standards:
- The Green Bond Principles as published by the International Capital Market Association (ICMA) in June 2021
- The Green Loan Principles published by the Loan Market Association (LMA) in May 2020 (PDF)
Since the activities of the company have been classified by ISS as green, all proceeds from Green Instruments will be used to finance Klappir’s digital platform and ecosystem for sustainability. As such, operations can be defined as projects, investments and expenditures under this Framework which support society’s transition toward sustainability.
This Framework is based on robust international principles, guidelines, and protocols. Furthermore, it is based on best practices in Europe and benchmarked with similar frameworks issued by companies that are leading in sustainability:
- The Green Bond Principles (ICMA) in June 2021
- The Green Loan Principles (LMA) in May 2020
The Principles are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond and Green Loan market by clarifying the approach for Green Financing. In addition to the ICMA Green Bond Principles and the LMA Green Loan Principles, Klappir will monitor developments surrounding the EU Green Bond Standard (EU GBS), EU Taxonomy and other relevant guidelines and trends. This Green Financing Framework may, therefore, be further updated or expanded to reflect this.
The Green Financing Framework takes into account:
- Use of Proceeds
- Eligible Green Projects
- Non-financial KPIs and targets of Klappir
- Process of evaluation and selection
- Management of Proceeds