First Green Equities: Done!

    Stockholm (NordSIP) – K2A announced the launch of its Green Equity Framework, the first such framework in the world. The framework will guarantee the transparent reporting of the company’s climate impact and provide an assessment of the environmental performance of the company.

    “This is a natural part of K2A’s sustainability strategy and a step in the transition to an economy with lower carbon dioxide emissions. The hope is that the introduction of green equity will be well received and appreciated by the market. We are proud to be pioneers in green investments and are constantly looking at how we can develop our sustainability work”, says Johan Knaust (Pictured), CEO at K2A.

    K2A is a real estate company founded in 2013. It focuses on long-term management of self-produced rental buildings for all types of housing. K2A claims it has been able to produce buildings with lower climate impact compared to conventional house production by using environmentally friendly raw materials – mostly locally produced Swedish wood. According to the company, “the framework will apply to all equity, both current and future, as long as a valid second opinion provided by an external part is publicly available on the company’s homepage.”

    According to K2A’s Green Equity Framework, the real estate company expects the energy efficiencies of its new wooden and environmentally certified buildings and renovations to be consistent with the latest version of the EU taxonomy. The announcement was accompanied by the publication of the CICERO Shades of Green assessment for companies and equities. According to CICERO second opinion,  approximately 78% of K2A’s revenue streams and about 83% of the company’s investments were classified as green in various shades from light to dark green.

    “By applying our shades of green on the revenue streams and investments, and making the information available to investors and lenders we believe it can help them to take the right investment decisions and to guide them towards the companies that are serious about their green transition,” said CICERO Shades of Green CEO Harald Francke Lund. “Understanding risks has become even more important as a result of the ongoing global crisis caused by the Coronavirus outbreak. Taking the right investment decisions and making the economy more robust, resilient and sustainable becomes even more important in the months and years ahead.”

    Swedbank acted as structuring advisor for K2A.

    Image courtesy of K2A

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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