UPM has established a framework for green financing which describes the activities and investments that supports UPM in its way towards Beyond Fossils. The framework encompasses all debt instruments with funds dedicated for green activities and investments.
‘Use-of-proceeds’-based financing such as loans and bonds form an additional part of UPM’s sustainable financing.
Green Finance Framework is based on the 2018 version of the Green Bond Principles published by the International Capital Markets Association (ICMA) and the 2020 version of the Green Loan Principles, published by the ICMA, the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) respectively.
The net proceeds of the green debt raised by UPM will be used to finance or re-finance Eligible Assets and Projects from following categories:
- Sustainable forest management
- Climate positive products and solutions
- Pollution prevention and control, including waste management
- Water and wastewater management
- Energy efficiency initiatives
- Renewable energy
UPM will annually publish a report on the allocation and impact of Green Bonds issued under this framework.