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Picture of new Frakkagjerd school in Tysvær municipality

Impact Report 2023

Our Impact Report presents the environmental impact of KBN's green lending programme. The net proceeds of the green bonds issued by KBN are used to finance or re-finance green projects in the Norwegian local government sector.

Photo: HOLON arkitektur


Strong green growth and updated impact reporting principles

KBN’s 2022 Impact Report confirms strong growth in green lending and successful green bond issuances, and provides detailed information on developments in impact reporting, including taxonomy alignment of criteria for green projects.

Milestone for KBN’s green lending

In 2023, KBN passed NOK 50 billion in green lending to 474 projects in the municipal sector, a growth of NOK 11.1 billion. KBN issued a CAD 500 million Green Benchmark and had outstanding NOK 38.6 billion in green bonds in five different currencies, totalling 8.6% of KBN’s total borrowings. The Impact Report presents the projects financed with green bonds and their associated environmental impact, as well as provides information on the governance of KBN’s lending programme.

Nordic issuers update green bonds reporting guidance

KBN’s impact reporting is based on the Nordic Public Sector Issuers’ Position Paper on Green Bonds Impact Reporting, which was developed by a group of Nordic issuers including KBN. The position paper aims to provide practical guidance on impact reporting, and is updated as reporting methodologies advance.

Sharing experiences on this topic has proven beneficial for establishing common reporting principles, and a unified Nordic stance on the issues discussed is believed to be advantageous for other issuers as well. The 2024 version marks the fourth edition of the paper and contains new recommendations to reflect recent market developments.

The material changes in the 2024 update include new recommendations for vintage reporting as well as a set of recommendations to topics such as look-back/allocation periods, ESG strategy and risk management. A full mapping of KBN’s adherence to the reporting principles is provided in the 2023 Impact Report.

See the Position Paper on Green Bonds Impact Reporting (PDF 6MB)

Enhanced engagement with the EU taxonomy

In 2023, KBN embarked on a pilot project with Sandefjord municipality, with the ambition of financing the building of a taxonomy-aligned school. KBN hopes to help inspire the municipal sector, as well as the private sector to increase their green ambitions, and issue an EU Green Bond if the demand for taxonomy loans is sufficient.

KBN conducted another assessment of our green project portfolio against the substantial contribution criteria and the DNSH-criteria of the taxonomy, incorporating the Environmental Delegated Act published in November 2023. A summary of the analysis can be found in the report, while the full mapping is available for download in spreadsheet format.

To be considered taxonomy aligned, a green project must also adhere to the Minimum Safeguards (MS). KBN’s initial MS assessment shows a general commitment to human rights obligations and strong performance in external rankings for Norway and subsequently its municipalities and counties, indicating a general compliance with the minimum safeguards.

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