SSAB’s Sustainability-Linked Finance Framework (SLFF) was reviewed by Sustainalyitics. According to the second party opinion, SSAB SLFF contributes to SDG 7 (Affordable and clean energy) and SDG 9 (Industry, innovation and infrastructure). The framework is judged to  “align with the five core components of the Sustainability-Linked Bond Principles 2020 (SLBP).”

The KPIs used by SSAB to measure its performance along the goals it has set for itself. “Sustainalytics is of the opinion that the KPI chosen by SSAB is material and relevant because it speaks directly to a material environmental issue for both company and country with a wide scope of impact to total operations,” Sustainalytics’ second opinion says.

One short-fall of the framework is its exclusion of Scope 3 emissions. Scope 1 and 2 emissions represent the majority of SSAB’s emissions, accounting for approximately 68% of its total Scope 1, 2 and 3 emissions,” the second opinion adds. “Sustainalytics notes that the KPI does not cover Scope 3 emissions (measuring ~32% of the total) attributable to processing of goods and services sold and purchased by the Company.7 While these remain an important source of emissions for SSAB, Sustainalytics recognizes the steps taken by SSAB in forming value-chain partnerships with ore suppliers and customers to reduce these emissions.

Image courtesy of SSAB