The Green Bond Impact Report 2019: Nobina reports environmental benefits from its green bus bond
In February 2019, Nobina issued a green bond for SEK 500 million – the first in the Nordic region linked to the public transport sector. The recently published 2019 report shows that the green financing has led to reduced emissions of 8,250 tonnes of carbon dioxide in the first year.
At the publication date, the green bus bond had financed some 50 fully electric buses and 90 buses that run completely on fossil-free fuel, with a further 4 electric buses awaiting delivery.
In 2019 alone, emissions were reduced by 8,250 carbon dioxide equivalents compared with buses that run on fossil fuels, corresponding to the annual emissions of 3,500 passenger cars. At the same time – and possibly the greatest effect – 8.5 million fossil-free trips were taken on the 140 buses financed through the green bond.
“This is a very clear and tangible example of how sustainability is an integral part of our strategy, and how public transportation meets both societal goals and several of the major future challenges of our day in the form of traffic congestion, air quality, road use and the need for smart mobility,” says Magnus Rosén, President and CEO of Nobina AB.
“But it is also clear proof of how the business sector and green financing can accelerate the transformation of society and help us achieve 100% fossil-free public transportation in the Nordic region more quickly,” Magnus Rosén continues.
The green framework was reviewed ahead of the issue by the independent climate and environmental research institute Cicero, which awarded Nobina the highest “Dark Green” rating. Today, just over one year later, the proceeds have been invested in full in new electric buses and buses that operate on renewable fuels.