Wallenius Wilhelmsen unveils its new Sustainable Financing Framework 2025
Wallenius Wilhelmsen presents its new Sustainable Financing Framework 2025, marking a significant advancement in the company's commitment to environmental stewardship and sustainable operations.
Building upon the initial 2022 framework, which targeted a 27.5% reduction in carbon intensity from 2019 to 2030, the new framework aligns with the company's ambitious goal of achieving net-zero greenhouse gas emissions by 2040.
These targets have been validated by the Science-Based Targets initiative, ensuring adherence to the latest climate science and alignment with the Paris Agreement's 1.5°C objective.
Transitioning to a fossil-free future is challenging, but essential. Climate change requires new technologies, infrastructure, low-carbon fuels, energy-efficient operations, and partnerships. The cost of achieving net-zero is significant – but insignificant compared to doing nothing.CEO at Wallenius Wilhelmsen
The framework outlines the details of how Wallenius Wilhelmsen may raise financing through green bonds, loans, and derivatives, as well as sustainability-linked bonds, loans, and derivatives.
We intend to allocate the green financing to new dual-fuel capable vessels that comply with the EU Taxonomy. Recognizing the evolving nature of the taxonomy, we closely monitor developments to ensure compliance.
For sustainability-linked instruments, the framework introduces three key performance indicators:
- Energy Efficiency Operational Indicator
- Absolute scope 1 greenhouse gas emissions in logistics operations
- Absolute scope 1, 2, and 3 greenhouse gas emissions for the group
Future sustainability-linked financings will feature pricing clauses related to the company's net-zero 2040 target and annual trajectory, with annual progress reports to be provided.
The transition from fossil fuels to low-carbon alternatives is projected to be the most significant contributor to emission reduction efforts from the 2022 baseline to 2040. This shift will be complemented by substantial technical and operational improvements to the current fleet, along with efficiency gains from new vessels. Collectively, these initiatives are essential to achieving the company's emission reduction targets.
We believe that decarbonization represents one of the greatest opportunities of our time. Through our green and sustainability-linked financing framework, we invite our investors and lenders to join us on the journey toward net-zeroCEO at Wallenius Wilhelmsen
The framework aligns with the Green Bond Principles and Sustainability-Linked Bond Principles published by the International Capital Market Association, as well as the Green Loan Principles and Sustainability-linked Loan Principles published by the Loan Market Association. Wallenius Wilhelmsen has engaged S&P Global Ratings to provide an independent opinion of the framework.
The framework and the related second-party opinion are available on the company's Investor Relations page under Sustainable Finance. This initiative underscores our dedication to integrating sustainability into our financial targets, reinforcing our role as a leader in sustainable operations.
