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voestalpine publishes its Green Financing Framework, laying the foundation for future green financing

Press Kit zip | 34.45 MB

17 June 2024 | 

With greentec steel, voestalpine has developed a clear plan to transform its steel production. Now, with the launch of the Green Financing Framework, the steel and technology Group has laid the foundation for the issuance of green bonds and other green financing instruments. As the first European steel company to publish its Green Financing Framework, voestalpine has once again confirmed that it sets the environmental benchmark in its industry.

Proceeds from these green financial instruments will be used to finance and refinance sustainable voestalpine projects such as greentec steel.

Gerald Mayer, CFO of voestalpine AG

We want to strengthen voestalpine’s position on the capital market for sustainable financing in order to target ESG investors. Our Green Financing Framework gives investors the opportunity to play a part in our path to green 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.

Gerald Mayer, CFO of voestalpine AG

The voestalpine Green Financing Framework 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 Loan Market Association (LMA), and was reviewed by the ESG rating and research agency Moody’s as part of a second party opinion, receiving the rating “very good”. This top rating verifies the Group’s excellent governance and that projects financed by these instruments make a positive contribution to achieving climate targets.

greentec steel

greentec steel is a clear, phased plan with which voestalpine can make a valuable contribution to achieving the climate goals. In a first step from 2027, the Group will reduce its CO2 emissions by up to 30% by partially replacing its current coal-based blast furnace technology with electric arc furnace technology powered by green electricity. This corresponds to annual savings of almost 4 million tons of CO2 emissions, making greentec steel Austria’s largest climate protection program. The investment volume is around EUR 1.5 billion. From 2030, voestalpine plans to take the next big step by replacing another blast furnace at each of the sites in Linz and Donawitz. In the long term, voestalpine aims to produce steel with net zero CO2 emissions by 2050.

The voestalpine Group

voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. The voestalpine Group has been listed on the Vienna Stock Exchange since 1995. With its premium products and system solutions, voestalpine is a leading partner to the automotive and consumer goods industries, as well as to the aerospace and energy industries. The company is also the global market leader in railway systems, tool steel, and special sections. voestalpine is committed to the global climate goals and has a clear plan for transforming steel production with its greentec steel program. In the business year 2023/24, the Group generated revenue of EUR 16.7 billion, with an operating result (EBITDA) of EUR 1.7 billion; it has around 51,600 employees worldwide.