UPM published its first Green Financing Framework in 2020 and has since issued three Green Bonds. The updated Green Finance Framework is a consistent and tangible step to further align our financing strategy with our sustainability targets.
The updated Green Finance Framework has been established in accordance with the Green Bond Principles (GBP) 2021 (with June 2022 Appendix I), as well as the APLMA, LMA and the LSTA Green Loan Principles (GLP) 2023. With this framework, UPM may utilise a variety of Green Finance Instruments, including but not limited to Green Bonds and Green Loans. The Green Finance Framework is aligned with the core components of the GBP and GLP, including the recommended External Review component.
Eligible Green Categories
An amount at least equal to the proceeds from the Green Finance Instrument issued by UPM will be exclusively used to finance and/or refinance, in whole or in part, projects, assets, expenditures or activities that are in accordance with the Eligible Green Projects and Assets from following categories:
- Sustainable forest and plantation management
- Climate positive and circular bioeconomy adapted products and solutions
- Renewable or CO2-free energy
- Pollution prevention and control, including waste management
- Sustainable water and wastewater management
- Energy efficiency initiatives
UPM is committed to transparent allocation and impact reporting on any relevant Green Finance Instrument and will annually publish a report, until maturity of any issued Green Finance Instruments. UPM will also engage an independent external auditor to provide an annual limited assurance on both allocation and impact reporting, until the proceeds of the green finance instrument have been fully allocated.
Second Party Opinion
S&P Global Ratings has reviewed the Framework under its updated “Shades of Green” methodology and assessed its alignment with the ICMA Green Bond Principles. UPM´s updated Green Finance Framework has received the highest "Dark Green" shading from S&P Global Ratings, in line with the framework established in 2020.