The Swedish and international export finance system can act as catalysts in the transition to a sustainable society by directing funds towards investments that contribute to the fulfilment of global climate and sustainability goals.

SEK’s updated Sustainability Bond Framework is developed to consistently support projects that promote a just climate transition and deliver social benefits.

– Supporting the Swedish export industry’s transition and contribution towards a more sustainable and resilient future remains a top priority for SEK. Our updated sustainable bond framework enables SEK to raise funding through green, social, and sustainability bonds, strengthening our capacity to contribute to sustainable development, says Maria Simonson, Head of Customer Relations and Chief Sustainability Officer at SEK.

SEK established its first Green Bond Framework in 2015 and later developed its Sustainability Bond Framework in 2021. The purpose of the updated framework is to align with the latest market principles and further enhance and expand the eligible criteria.

– The updated Sustainable Bond Framework enhances transparency and clarity for investors. With this update, SEK ensures that investors gain a clearer view of the scope of our sustainable projects and that their investments are exclusively allocated to initiatives that deliver tangible social and environmental benefits, says Louise Bergström, Funding & Investor Relations Director at SEK.

Alignment with market principles and the EU Taxonomy

In the updated framework, green bonds will align with the Green Bond Principles (‘GBP’) published in June 2021 (with June 2022 Appendix) as administered by ICMA. Social bonds will align to the Social Bond Principles (‘SBP’) published in June 2023, as administered by ICMA. Sustainability bonds will align with the Sustainability Bond Guidelines (‘SBG’) published in June 2021, as administered by ICMA, in addition to the applicable principles for green and social bonds.

The framework separates project selection criteria for Eligible Green Projects into two types: those fully aligned with the EU Taxonomy Substantial Contribution Criteria (‘SCC’) and those based on the CBI Climate Bonds Taxonomy or other market standards. For projects within the EU, SCC-aligned criteria will always be used, while for projects outside the EU, they will be applied wherever feasible. Alternative criteria will only be used if applying the EU taxonomy SCC is not possible. In addition, Eligible Green Projects within the EU will follow the DNSH criteria of the EU Taxonomy on a best effort basis. The Minimum Social Safeguards will be applied to Eligible Green Projects within and outside of the EU.

Eligible Social Projects will contribute to clearly defined target populations, mainly within developing countries. Furthermore, these will be assessed against the AAAQ model (Availability, Accessibility, Acceptability and Quality) with consideration given to the additionality of the projects.

Eligible green project categories

Renewable energy, Green buildings, Energy efficiency, Clean transportation, Pollution, prevention and control, Circular economy, Water and wastewater management, Environmentally sustainable management of living natural resources and land use, and Climate adaption.

Eligible social project categories

Affordable basic infrastructure, Access to essential services, Affordable housing, Employment generation, and Food security and sustainable food systems.

The Sustainability Bond Framework and the Second Party Opinion from Sustainable Fitch are available on SEK’s website.

For more information, please also see the ESG Factbook 2023 that is available on SEK’s website, and SEK Green Bond Letter 2023.

Citi, Crédit Agricole and SEB have acted as Sustainability Structuring Banks on the update of SEK’s Framework.