Green Finance
Green Finance Framework
To meet the growing demand for sustainable financing, Zug Estates has decided to convert its existing Green Bond Framework into a Green Finance Framework. This enables Zug Estates to raise or refinance not only green bonds, but also other types of green financial instruments that are explicitly used to support sustainable projects.
A green portfolio
95 percent of the Zug Estates portfolio consists of green buildings. These generate less than 1 kg CO2eq per square meter of energy reference area during operation. In March 2024, the Suurstoffi site was the first site in Switzerland to be awarded the DGNB platinum certificate for sustainable districts in planning and construction by the Swiss Sustainable Building Council (SGNI). This means that 47 percent of the buildings are certified.
Reporting structure
To ensure complete transparency for investors and other stakeholders, Zug Estates prepares and publishes an annual green finance report consisting of allocation and impact reporting. The allocation report deals with the use of funds, while the impact report shows the impact of the funds used on nature and the environment.
Allocation Reporting
The allocation report provides information on the use of the funds received.
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Typ
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Volume
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Term
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Coupon
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Prospectus
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|---|---|---|---|---|---|---|---|---|---|
| Green Bond | CHF 100 Mio. | 2019-2025 | 0.10% | Open file | |||||
| Green Bond | CHF 100 Mio. | 2022-2029 | 0.75% | Open file | |||||
| Green Bond | CHF 100 Mio. | 2024-2031 | 1.65% | Open file | |||||
Total proceeds from green bonds: CHF 300 million.
The issue proceeds from the green bonds were allocated in full to the eligible projects in the green basket.
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Assigned eligible projects
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|---|---|
| Bauffeld 1 (Suurstoffi 1-6) | |
| Suurstoffi 16-20 | |
| Suurstoffi 22 | |
| Total market value Green Basket: CHF 423.9 million | |
The Green Finance Committee ensures that there are always enough eligible projects in the green basket with at least the equivalent of the net proceeds from the total proceeds of the green bonds.
Impact Reporting
Total annual greenhouse gas emissions during operation of the project (kg CO2eq) and per square metre of energy reference area (kg CO2eq / m2 ERA p.a.; Scope 1 and 2, "market-based" incl. out-of-scope emissions based on the methodology of the Greenhouse Gas Protocol).
Accounting period: 1 October 2023 to 30 September 2024
The buildings in Green Basket only cause Scope 2 emissions. Emissions have fallen sharply compared to the same period of the previous year. On the one hand, in 2024 electricity was sourced exclusively from within Switzerland, which is associated with lower emission factors. Secondly, heating requirements were lower due to the weather.
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Indicator
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Total Green Basket
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Baufeld 1 (Suurstoffi 1-6)
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Suurstoffi 16-20
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Suurstoffi 22
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|---|---|---|---|---|---|---|---|---|---|
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Greenhouse gas emissions (kg CO2eq) |
1'748 | 895 | 594 | 259 | |||||
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Greenhouse gas emissions per m2 of energy reference area (kg CO2eq) |
0.03 | 0.03 | 0.02 | 0.03 | |||||
Installed photovoltaic capacity and electricity production
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Indicator
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Total Green Basket
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Baufeld 1 (Suurstoffi 1-6)
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Suurstoffi 16-20
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Suurstoffi 22
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|---|---|---|---|---|---|---|---|---|---|
| Installed photovoltaic capacity in kWp | 523 | 126 | 336 | 60 | |||||
| Electricity production of the PV systems in MWh | 338 | 102 | 193 | 43 | |||||
Zug Estates' Suurstoffi site was the first site in Switzerland to be awarded the DGNB platinum certificate for sustainable neighborhoods in planning and construction by the Swiss Sustainable Building Council (SGNI). This includes all properties from the Green Basket: construction site 1 (Suurstoffi 1-6), Suurstoffi 16-20 and Suurstoffi 22.
