Sustainability-linked loans

As of 31 December 2024, the total sustainability-linked loan volume amounts to MSEK 2,200.

The credit margins of the loans are linked to the yearly outcome of three well defined sustainability targets for environment, social and governance (ESG), which will be reported in the annual sustainability report.

• The first one covers the environment through direct energy efficiency targets in line with Pandox’s science-based climate targets.
• The second one addresses the social perspective and focuses on supply-chain controls for renovation and reconstruction.
• The third one focuses on governance and incentives to achieve Pandox’s science-based climate targets.

The incentive programmes for group management and general managers in the business segment Own Operations are tied to the science-based targets.

In contrast to “green loans”, which are earmarked for specific projects and properties, sustainability linked loans of this type are directed towards Pandox’s total sustainability work. The targets also create clear financial incentives for our sustainability work since credit margin will be lower when targets are reached.