SSAB's Green Finance Framework: Fossil-Free Steel

SSAB is taking a large step towards cleaner steel production with their new Green and Sustainability-Linked Finance Framework.

This framework will support investments in eco-friendly technologies and efficient production systems, ultimately leading to fossil-free steelmaking.

The framework has two key parts:

Science-Based Targets for Green Investments: SSAB's framework integrates ambitious greenhouse gas emission reduction targets, validated by the Science Based Targets initiative (SBTi). These targets align with the Paris Agreement's goal of limiting global warming to 1.5°C. The framework also defines what types of green projects qualify for financing.
Updated Sustainability-Linked Framework: This builds on SSAB's 2021 framework and incorporates their latest sustainability goals.

"With our new finance framework, we are taking a pivotal step in our transformation toward fossil-free steelmaking and reduced carbon dioxide emissions," says Leena Craelius, CFO at SSAB. "The framework contains ambitious, science-based emission reduction targets and sets clear guidelines for our green investments going forward."

Focus on Eco-Efficiency and Renewable Energy

The framework's green finance element focuses on two key areas:

Developing eco-efficient products, production technologies, and processes.
Investing in renewable energy sources.

SSAB is a leader in sustainable steel production. They were among the first steel companies globally to receive SBTi validation for their CO2 reduction targets under the organisation's 2023 steel sector guidelines.

These targets support SSAB's plan to transform their Nordic blast furnace system into mini-mills powered by renewable energy. This transformation is expected to considerably reduce CO2 emissions, eliminating roughly 10% of Sweden's and 7% of Finland's total emissions.

Independent Verification and Alignment with Green Bond Principles

Sustainalytics, an independent reviewer, confirmed the framework's credibility and positive impact. They also verified its alignment with several key green and sustainable bond principles established by the International Capital Market Association (ICMA) in 2023.