The framework has been established as part of Hydro’s commitment to sustainability. It is in accordance to the International Capital Market Association’s green bond principles and sustainability linked bond principles, as well as the Loan Market Association’s green loan principles and sustainability linked loan principles. The framework enables Hydro to issue green financing instruments and financial products linked to the company’s sustainability ambitions and efforts.

“The sustainability linked financing framework is an important milestone to improve our access to capital, support transparent reporting and drive a cost of capital advantage, as we deliver on our sustainability ambitions. Going forward, we will link two key performance indicators (KPIs) to the framework, the absolute reduction of Scope 1 & 2 GHG emissions and the increased capacity for recycling of aluminium post-consumer scrap,” says Executive Vice President and Chief Financial Officer, Pål Kildemo.

CICERO (Center for International Climate Research) Shades of Green has conducted an independent external assessment of the framework and classified it as medium green, with a governance score of ‘excellent.’ The framework and second party opinion from CICERO Shades of Green can be found on Green and Sustainability-Linked Financing Framework.