Voestalpine unveils green financing concept

Steel and technology group voestalpine has unveiled its Green Financing Framework. This is stated in the company’s press release.

With the launch of this program, voestalpine has laid the groundwork for the issuance of green bonds and other environmental financing instruments.

«By becoming the first European steel company to publish its green financing program, voestalpine has once again confirmed that it is setting environmental standards in its industry,» the statement said.

The proceeds from these financial instruments will be used to finance and refinance voestalpine’s sustainability projects, such as greentec steel.

According to voestalpine’s CFO Gerald Mayer, the company is looking to strengthen its position in the sustainable finance capital market to attract ESG-conscious investors. The Green Financing Framework gives the latter the opportunity to play a role in the group’s journey towards sustainable steel production.

«By adopting this approach, we are expanding our investor base and also contributing to the development of the private sustainable bond and credit market,» Mayer said.

According to the company, voestalpine’s green financing program was developed in accordance with the Green Bond Principles published by the International Capital Market Association (ICMA) and the Green Loan Principles published by the Credit Markets Association (LMA). It has also been reviewed by ESG-Rating and Moody’s as part of a third-party assessment, receiving a «very good» rating.

Greentec steel is a step-by-step plan by which voestalpine will achieve its climate goals. In the long term, the company aims to produce zero-carbon steel by 2050.

In April, voestalpine produced the world’s first high-quality green wire rod from hydrogen-reduced iron and scrap at its Donavík plant. The pure hydrogen-reduced iron was produced at the Hyfor pilot plant and the landmark smelting was carried out at the Technikum Metallurgie research center, a unique small but fully-fledged steel plant of the Group.