Green bonds

Region Stockholm is one of the largest regional and municipal issuer of green bonds in the Swedish bond market. Region Stockholm issued its first green bond already in 2014. Over 70 percent of Region Stockholm's debt portfolio is green financing; green bonds and loans tied to environmentally friendly projects from the European Investment Bank and the Nordic Investment Bank, with the ambition to grow the green financing part of the debt portfolio even further.

Green bonds are a way of borrowing money for investment projects with a particular environmental focus. They are a tool for raising awareness of climate-related challenges and solutions while at the same time safeguarding green development projects in the county.

The money that Region Stockholm borrows within the framework of the green bonds is earmarked for environmental projects and is held in a separate traceable account that is only used for investments that meet specific environmental criteria.

Region Stockholm's framework for green bonds received the highest possible rating, dark green, by CICERO (Center for International Climate and Environmental Research - Oslo). A dark green rating is allocated to projects and solutions that correspond to the long-term vision of a low carbon and climate resilient future. The green bond framework highlights Region Stockholm´s work for Agenda 2030 and specifies how the work with green bonds is done and reported.

Region Stockholm annually publishes an impact report to investors, including project descriptions and expected impact for all projects. Below there are some information about the projects financed with green bonds, more information is to be find in the impact report.

Karolinska University Hospital, Huddinge

Chopin, which is part of Karolinska University Hospital in Huddinge is a state-of-the-art building designed for advanced healthcare with the latest medical technology. The new 29 000 sqm large building contains cutting edge technology and equipment for demanding surgery with 23 operating theaters and a capacity of 18 000 surgeries per year. The new building also host radiology and a sterile technical section. The building is constructed in accordance with Miljöbyggnad 2.2 and the project has received an overall rating level Gold.

Södertälje sjukhus

Södertälje sjukhus is part of the ongoing extensive development of Region Stockholm's health and medical care services. Two new treatment buildings of Södertälje sjukhus were completed during 2017, including among others a new intensive care facility, a new emergency and a new cesarean section. This allows 7 500 additional emergency visits, increasing the total to 42 500 visits/year and making it one of the most modern hospitals in Sweden. The hospital has a central and expanded role, as a combined emergency and local hospital, for people living in the southwest part of the region.

The new hospital buildings have received the final certification overall level Gold in Miljöbyggnad 2.2.

Södersjukhuset

The new construction of Södersjukhuset(Framtidens Södersjukhus) is part of Region Stockholm’s future plan for health care. The future plan is one of the largest investments made in healthcare in the Stockholm region. Södersjukhuset is an emergency hospital located in central Stockholm.

During the project Framtidens Södersjukhus, which was completed in 2019, Södersjukhuset has expanded by approximately 50,000 square meters where all buildings were built at the same time, with maintained care capacity, where two of them, named 70 and 72, are financed with green bonds. The two new buildings have been constructed in accordance with Miljöbyggnad 2.2 and have received an overall preliminary rating level Gold. In a few years, a verification of the certification will take place. One of the new buildings won the award “Årets Miljöbyggnad” which is Sweden’s most prestigious price for sustainable construction.

Karolinska University Hospital, Solna

New Karolinska Solna (NKS) is one of the world’s most sustainable university hospitals both when it comes to facilities and to the environmental work regarding pharmaceuticals, textiles, patient meals and disposables in health care. The focus is on good indoor environment to ensure that patients and staff have good conditions. To achieve the exceptional environmental and sustainability goals that is set for the hospital, the entire project has been carried out from a sustainability perspective, from the choice of materials to the design of the building.

One of the tools used is environmental certification of the buildings. Two types of certification schemes have been used; Miljöbyggnad issued by the Sweden Green Building Council, and LEED, an international green building rating system. NKS has obtained Gold level in both certification schemes; Miljöbyggnad Gold 2.0 was verified in 2021 and LEED Gold level was achieved in 2018.

Danderyds sjukhus

Danderyds sjukhus is located in the north part of Stockholm and is one of the largest emergency hospitals in Sweden. At this hospital, university healthcare is provided alongside education and research within the most common public diseases. As a part of Region Stockholm’s future health plan, a new emergency and treatment building at this hospital has been completed by the end of 2019.

The building is constructed in accordance with Miljöbyggnad 2.2 and the project has received an overall rating level of Gold, where 14 of 15 indicators was preliminary certified with Gold level.

The verification process, which started when the building was completed was finally certified according to Miljöbyggnad Gold in 2023. The project was also one of three finalists for the award “Environmental Building of the Year” 2019. The project has focused on low energy use e.g. by using waste heat from the sterile plant to preheat tap water and by using heat from cooling machines to preheat the heating system.

Roslagsbanan expansion programme

The Roslagsbanan expansion programme aims to develop and strengthen the capacity of a historical railway line that is of great importance for public transport in the north-eastern sector of Region Stockholm.

In addition to promoting sustainable travel, the programme includes many environmental initiatives. The project has a large focus on the re-usage of materials; rail and sleepers, ticket machines and catenary posts are re-used. Recycled glass is also used as lightweight fillers. Wildlife preservation is also a key focus area.

Metro Red Line programme – new vehicles

The upgrade of the Metro's Red Line creates a possibility for more people to travel by public transport, reducing the emissions of carbon dioxide (CO2), one of Region Stockholm's key environmental goals. The upgrade of the Metro's Red Line aims to develop and strengthen capacity and thereby contribute to a more resilient and sustainable public transport.

One of the biggest investments in the Metro Red Line programme is the investment in new trains. 96 new vehicles will be taken into traffic, with full effect year 2025. The new vehicles have well-thought-out design, high operational reliability, new technology, increased capacity and are prepared for future fully automatic operation. The new furnishings reduce perceived crowding and creates better passenger flow, more doors and seats along the sides provide wider aisles, more space for standing passengers and spaces especially intended for prams and wheelchairs.

In 2016, Region Stockholm, in cooperation with other Nordic public issuers of green bonds, began an effort to formulate a common approach to feedback reporting. The cooperation is founded on the conviction that a common Nordic position will offer reporting standards for issuers and valuable insight for other green bond issuers as well as the investor market. There is also a value in sharing experiences and expertise.

The objective is to develop a transparent, harmonized and relevant approach to reporting the effects of green bonds. The group's ambition is to continue to develop the cooperation between the Nordic issuers of green bonds, and to continually refine the impact guide. The most recent update was published in March 2024.

Signatories are: City of Göteborg (Sweden), Kommunalbanken (Norway), Kommuninvest (Sweden), Kommunekredit (Denmark), Municipality Finance (Finland), Linköping Municipality (Sweden), Norrköping Municipality (Sweden), Örebro Municipality (Sweden), Svensk Exportkredit (Sweden), Municipality of Lund (Sweden), Region Skåne (Sweden) and Region Stockholm (Sweden).