REGION STOCKHOLM GREEN BOND - sll.se...Region Stockholm reports its Green Bonds impact in accordance with the Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting,

REGION STOCKHOLMGREEN BONDIMPACT REPORT 2020

Contents

Green Bond impact report 2020 ................................................................................ 3

Executive Summary ..................................................................................................... 4

Region Stockholm’s Green Financing Portfolio ........................................................ 6

Region Stockholm’s environmental programme 2017–2021 ................................... 6

Region Stockholm’s framework for Green Bonds .................................................... 7

Improved reporting on Green Bonds ........................................................................ 7

Feedback on Green Bonds and green finance .......................................................... 8

Investor meetings ....................................................................................................... 9

Region Stockholm’s projects for green investments .............................................. 10

Miljöbyggnad ...................................................................................................... 10

Karolinska University Hospital, Huddinge ........................................................ 11

Södertälje Sjukhus AB ......................................................................................... 13

Karolinska University Hospital, Solna ................................................................ 15

Södersjukhuset AB .............................................................................................. 17

Roslagsbanan expansion programme .............................................................. 19

Metro Red Line programme .............................................................................. 21

Extension of the Metro in Stockholm ...............................................................22

Depot for extended Metro in Högdalen ..........................................................22

Social sustainability ..................................................................................................23

Region Stockholm first out to issue a Health Impact Bond

with a unique bond model ......................................................................................23

Facts about the Health Impact Bond ....................................................................... 24

3REGION STOCKHOLM GREEN BOND IMPACT REPORT 2020

GREEN BONDIMPACT REPORT 2020

It is important that Region Stockholm continues to lead the way to a green and sustainable future. We are the largest regional and municipal issuer of green bonds in the Swedish market. At the same time, this past year – even though we had the pandemic – Region Stockholm was first to issue a Health Impact Bond with its unique financial structure. We strive to develop innovative solutions through investments that are good for both present and future generations.”Irene Svenonius, Regional Chair for Finance

It has been a special year with the pandemic, but at the same time combating climate change can’t wait. We continue to work for Region Stockholm to be the world’s first climate-neutral metropolitan region. Green Bonds are an important tool on this journey and we now have had another successful year behind us and I am confident the best is yet to come.”Tomas Eriksson, Regional Chair for Environment and Public Transport

Green Bonds financing is a way of financing invest-ment projects with an environmental focus. Green Bonds enable Region Stockholm to realize environ-mentally friendly projects in key areas such as sustainable public transport and sustainable build-ings. Being a pioneer in this field, Region Stockholm is an important player in the crucial work to resolve environmental problems for future generations.”Carina Lundberg Uudelepp, Regional Chief Executive, Region Stockholm

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4 REGION STOCKHOLM GREEN BOND IMPACT REPORT 2020

Executive Summary

Region Stockholm reports its Green Bonds impact in accordance with the Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting, the 2020 edition. Any deviations from the Position Paper recommendations will be indicated in our reports.

01 0002 0003 0004 000

5 0006 0007 0008 0009 000

10 00011 00012 000

13 00014 00015 000

SEK 2.4 bn GB (2020)

SEK 2.9 bn GB (2019)

SEK 3.5 bn GB (2018)

SEK 2.0 bn GB (2017)

SEK 1.5 bn GB (2016)

SEK 1.8 bn GB (2015)

Total amount disbursed to projects

Green Bond portfolio and disbursed amount

2015 2016 2017 2019 20202018

SEK

m

Green Bond CO2 impact based on disbursed amounts to Green Bonds

Project category

GHG emisssions reduced/avoided Disbursed amounts to

projects, SEK m

Impact

2020 (tonnes CO2e)

Accumulated1

(tonnes CO2e)2020

CO2e / SEK mAccumulated CO2e/SEK m

Renewable energy (Disbursed amounts reported under Green buildings) 600 2 100 – – –

Green buildings 2 700 9 600 5 936 0,5 2

Clean transportation 9 400 30 300 8 121 1 4

Total (Disbursed amounts w. CO2 impact SEK m) 12 1002 39 9002 14 0573 1 3

Annual renewable energy generation, GWh 4

Annual energy savings, MWh4 5 000

1 The accumulated amount refers to year 2017 to 2020. 2 Renewable energy is excluded from the total as it is already partly included in Green buildings. 3 Högdalen depot, 43 mkr is excluded due to very low amount. 4 Compared to national building requirements, rounded per 100 MWh

Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting

1

Nordic Public Sector Issuers

Position Paper on Green BondsImpact ReportingFebruary

2020


Key procedural aspects

• Each project is selected according to Region Stockholm’s Green Bond Framework.

• Region Stockholm reports on project basis, and in Swedish kronor (SEK).

• For this document, the reporting period ends on 31 December 2020.

Key reporting methodology

• Region Stockholm reports based on the share of the project’s total investment cost financed with Green Bonds (net of redemptions).

• Impacts are based on outstanding disbursed amounts to projects financed through Green Bonds in Region Stockholm by end of 2020.

• Impact is principally reported on expected impact (ex ante), unless clearly stated as ex post.

0

5000

10000

15000

20000

25000

30000

35000

Other financing 42 %

Green financing 58 %

Growth in our Green Bond portfolio

2016 2017 2018 2019 20202014 2015

Green Bonds14 100

SEK

m

Green Bonds are a tool for raising awareness of climate-related challenges and solutions while safe-guarding green development projects in the region. Region Stockholm is determined to contribute to the fulfilment of the Paris agreement. Green public transportation enables climate effective mobility and reduces the climate impact from the whole Stockholm area.”Charlotta Brask, Head of Sustainability at Region Stockholm

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Region Stockholm’s Green Financing Portfolio

The table below shows the climate impact of all the projects financed by green financing. Green financ-ing for Region Stockholm includes Green Bonds and

loans from the European Investment Bank (EIB) and the Nordic Invest Bank (NIB) that set high environmental requirements.

Total CO2 impact and green financing impact

Project category

GHG emisssions reduced/ avoided 2020

Disbursed amounts to projects 2020

Total (tonnes CO2e)

Green financing (tonnes CO2e)

Total amount (SEK m)

Green amount (SEK m)

Renewable energy 4 100 1 600 – –

Green Buildings 12 100 7 100 25 044 10 691

Clean transportation 14 700 12 900 14 187 16 121

Total1 26 8001 20 0001 39 859 26 855

Total CO2/Disbursed amounts w. CO2 impact SEK m2 26 8001 20 0001 39 2312 26 8122

Annual renewable energy generation, GWh 27 9

Annual energy savings, MWh3 21 500 9 300

1 Renewable energy impact (CO2e) is excluded from the total as they are partly included in Green buildings.2 Högdalen depot is excluded due to very low amount.3 Compared to national building requirements, rounded per 100 MWh.

Region Stockholm’s environmental programme 2017–2021

Region Stockholm is a dynamic and rapidly growing region requiring major investments in public transport and healthcare to facilitate successful development. Region Stockholm aims to contribute to sustainable development in the region, by a way of limited environmental impact.

Region Stockholm is taking a comprehensive approach to reducing environmental impact from properties and installations, pharmaceuticals, textiles, food and travel. Region Stockholm also

takes national and global responsibility for the production of goods and services that are procured.Region Stockholm’s environmental programme covers five areas:• Sustainable procurement• Climate commitment• Healthcare• Public transport and other transports• Properties and installations


Region Stockholm’s framework for Green Bonds

Region Stockholm’s green financing operations is set up according to its framework for Green Bonds. The framework stipulates how the selection process of green projects needs to be conducted, how the proceeds must be managed in separate accounts and how the communication and reporting of the projects will ensure transparency for investors. In 2018 the independent analyst firm CICERO (Center for International Climate and Environmental Research – Oslo) evaluated Region Stockholm’s upgraded framework for Green Bonds giving it the highest possible rating, dark green.

Any financing raised by Region Stockholm within the Green Bond framework is earmarked for environmental projects and is held in a separate traceable account that is allocated for investments that meet specific environmental criteria.

The eligible projects are selected jointly by Region Stockholm’s Treasury Department and the Sustain-ability Department. The projects are then approved by a Steering Group for Green Bonds consisting of executive managers from Region Stockholm’s local bodies.

Improved reporting on Green Bonds

In 2016, Region Stockholm, in cooperation with other Nordic public issuers of Green Bonds, began an effort to formulate a common approach to impact reporting. The cooperation is founded on the conviction that a common Nordic position will offer reporting stand-ards 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, harmo-nized and relevant approach to reporting the impact of Green Bonds. The group’s ambition is to continue to develop the cooperation between the Nordic issu-

ers of Green Bonds, and to continually refine the impact guide that was updated January 2020. During 2020, the Nordic group has also worked on and analyzed the proposed EU Green Bond Standard and the EU Taxonomy.

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

Thanks to Green Bonds we can access a broader investor base to a more attractive price level. Almost 60 per cent of Region Stockholm’s debt portfolio is green financing. Through clear and transparent reporting for green projects, we hope to provide investors with more reasons to choose green investments.”Frida Korneliusson, CEO Region Stockholm Treasury

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Feedback on Green Bonds and green finance

The first Green Bond by Region Stockholm was issued in May 2014 and by end of 2020 13 Green Bonds were outstanding with a total amount of SEK 14.1 billion. One of the bonds issued during 2020 financed “Framtidens Södersjukhus” which is a hospital that is located in the heart of Stockholm. More information about this project and other investments financed through Green Bonds can be found from page 10.

The table below show Region Stockholm’s green investment expenditures.

All projects are reported according to the guide for Nordic issuers of Green Bonds except the impact of the new Metro. Currently the climate impact for the depot in Högdalen, has been omitted, as it only repre-sents a small portion of the proceeds (SEK 43 million).

Expansion of Roslags-banan

Red Line programme

Högdalen depot

Södertälje hospital

New Karolinska Solna Chopin SÖS

Total investment (of which disbursed) SEK m 9 650 (8 076)

10 710 (6 111)

4 530 (628)

1 200 (1 200)

18 500 (18 500)

1 940 (1 649)

3 723 (3 695)

Total green financing (whereof Green Bond) SEK m

6 612 (6 612)

9 509 (1 509)

43 (43)

768 (768)

7 323 (2 568)

1 600 (1 600)

1 000 (1 000)

Green Bond 13, 2020 ISIN:XS2251312018 1 000 1 000


Green Bond 11, 2020 ISIN:XS2106644169 400 400

Green Bond 10, 2019 ISIN:XS2091126800 400 300 100

Green Bond 9, 2019 ISIN:XS2084871594 500 350 150



Green Bond 6, 2018 ISIN:XS1915003005 2 500 1 750 750

Green Bond 5, 2018 ISIN: XS1796266671 1 000 1 000

Green Bond 4, 2017 ISIN:XS1626936626 2 000 957 43 1 000

Green Bond 3, 2016 ISIN: XS1420355023 1 500 552 225 723

Green Bond 1 and 2, 2015

ISIN: XS1239582502 ISIN: XS1239582684 1 800 580 375 845


Investor meetings

Region Stockholm works actively to provide trans-parency for investors. One example is the investor meetings that Region Stockholm organizes on a regular basis. The projects financed with Green Bonds have been of interest to investors and the meetings have been well attended. Examples of projects visited earlier years are the New Karolinska Solna, the depot in Norsborg and the electric shuttle covering routes in Saltsjön. During 2020 Region Stockholm faced challenges due to covid-19 which

impacted both the health care system and the public transportation. Nevertheless, an investor meeting was arranged digitally where Björn Eriksson, Director of healthcare, informed investors about the fast transition that was needed to be done within the health care system due to the pandemic during the spring 2020. Furthermore, the CEO of Danderyds hospital, Yvonne Haglund Åkerlind, shared perspectives around the challenges from one of the busiest emergency hospitals at that time.

The investor meeting 2020 was held in a digital format due to covid-19.

Investor meeting year 2018, the Norsborg depot.


Region Stockholm’s projects for green investments

Miljöbyggnad Miljöbyggnad is a Swedish third party reviewed certification system for sustainable buildings. It is based on three pillars: energy, indoor environment and construction materials and has 16 indicators such as energy use, daylight and hazardous sub-stances. The certification is available in three different grades: Gold, Silver and Bronze. Bronze corresponds in principle to the legal requirements already applicable, while Silver and Gold requires more. A unique characteristic of Miljöbyggnad is that a building cannot obtain a Gold rating if any of the individual indicators are rated Bronze. The pur-pose is to identify critical parts in the building and to encourage actions that improve performance.

After completion of the design stage a preliminary certificate is awarded. No later than two years after the completion of the buildings, the preliminary certificate must be verified in an extensive process in order for the buildings to be awarded the final certificate. Those of Region Stockholm’s buildings that are currently financed through Green Bonds have an overall rating level Gold.

The picture below visualizes the indicators included in the certification system Miljöbyggnad 2.2. It is a front edge system within the construction industry that takes the most prioritized aspects of sustainable construction into account.

Energy– Energy use– Heat losses– Solar heat load– Energy sources

Materials– Documentation of building

materials– Phasing out of hazardous

substances

Indoor environment– Acoustics– Radon– Ventilation– Traffic pollution– Moisture resistance

– Thermal comfort winter– Thermal comfort summer– Daylight– Legionella


Karolinska University Hospital, Huddinge

Project Chopin, which is part of Karolinska University Hospital, Huddinge hospital area, is a state-of-the-art building designed for advanced healthcare with the latest medical technology. The hospital, which is located in the south of Stockholm, is being modernized according to Region Stockholm’s plan to accommodate for future health and medical care demand. The new, 29,000 sqm building, con-tains cutting edge technology and equipment for advanced surgery with 23 operating theaters and a capacity of 18,000 surgeries per year. The new building also hosts radiology and a sterile process-ing department. The design of the building is based on the requirement that surgery needs to have close access to intervention facilities and advanced image diagnostics.

The building has been built with separate flows for patients, materials and personnel leading to increased efficiency, higher quality and increased availability. The new sterile facility is built with the patient in focus and is supporting new ways of work-ing aimed to provide high safety for both patients

and employees. In order to create a good indoor environment for patients, employees and visitors, the building has been designed with ample access to natural daylight and high thermic comfort. Due to the advanced care that will be given in the facilities, demands on technical equipment and ventilation systems are exceptionally high.

The construction of the new surgery building started in year 2015 and was completed in year 2020. The building is constructed in accordance with Miljöbyggnad 2.2 and the project has received an overall rating level Gold, where 13 of 15 indicators have been preliminary certified with Gold level and two with Silver level. The verification process, which starts when the building is completed and lasts for about two years, is currently in progress. For example, the calculated energy use in the build-ing is 75 kWh/sqm, being 35 per cent lower than the legal demands1. Another example is that 100 per cent of the electricity used is from renewable sources and marked “good environmental choice”2.

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1 Swedish National building code BBR21.2 Certified with environmental label Bra Miljöval for 100 per cent of the electricity 2020, verified by LOS Energy AB, as per Naturskyddsföreningens license through Entelios AB.


Karolinska University Hospital, Huddinge (Chopin)

Category Project Indicators Unit Baseline /remarks

Green buildings1

New building standard exceeding building standard requirements

Annual energy avoided compared to the relevant building code

1 100 MWh National building code BBR21

– Attributable to Green Bond 1 100 MWh

Annual GHG emissions reduced/avoided

250 tonnes2

– Attributable to Green Bond 250 tonnes2

Annual GHG emissions reduced/avoided using green energy

350 tonnes2


Environmentally friendly materials being used

Percentage of materials being used accepted in Byggvaru-bedömningen3

94 %

Waste management

Energy efficient and resource- preserving waste treatment

Material recovery rate 97 % recovery incl. energy

97% consists of: reuse of construction materials 21 %, material recovery 28 %, energy recovery 47%. Landfill 3 %. Benchmark: National average for the service provider contracted by NKS (SITA Sverige/Suez recycling) was 92 % for 2017.

1 All data concerning volumes of electricity, heating and cooling are based on the report ”Energiberäkning CHOPIN” dated 2017-10-27 written by Helena Engström, Incoord. Ex ante, no actual values are yet included. From the report values with 10 kWh/m2, Atemp safety margin have been used. Assumptions on repartition between electricity, district heating and district cooling in relation to BBR21. CO2equivalents per kWh for used electricity from Vattenfall, EPD for waterpower. 10,5 g/kWh (Bra Miljöval). CO2equivalents per kWh for used district heating from Region Stockholms climate calculator 2020, 28 g /kWh (SFAB).

2 Rounded per 50 tonnes. 3 Only products covered by Locums policydocument R.24 ”Riktlinje val av produkter” (Guideline for choosing products)

and Miljöbyggnad manual 2.2 are reported.


Södertälje Sjukhus AB Södertälje Sjukhus AB, situated about 30 km south of central Stockholm, is part of the ongoing exten-sive development of Region Stockholm’s health and medical care services. Two new treatment buildings at Södertälje Sjukhus AB were completed during 2017, including, among others; a new intensive care facility, a new emergency unit 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 new hospital buildings have received the final certification overall level Gold in Miljöbyggnad (2.2). The verification process has been finalized to

confirm that the theoretical values specified in the certification application are correct, in order to receive the final certification.

The calculated energy use for this project was 83 kWh/sqm, being 35 per cent lower than the legal demands and the result during 2020 was even better with a measured energy use of 66 kWh/sqm, which is around 50 per cent below the legal demands of 126 kWh/sqm3. Included in the project is the building of a geothermal cooling and heating system which is an environmentally conscious alternative to meet the hospital’s need for cooling and heating. All purchased electricity is 100 per cent renewable.4


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Södertälje Sjukhus AB


Renewable energy1

Geothermal energy

Capacity of energy generation of plant

170 MWh

Annual renewable energy generation

170 MWh

– Attributable to Green Bond 110 MWh

Annual GHG emissions reduced/ avoided

<50 tonnes CO2e

– Attributable to Green Bond <50 tonnes CO2e

Green buildings1



1 300 MWh1,2 Ex post calculations. National building code BBR19

– Attributable to Green Bond 850 MWh2

Annual GHG emissions reduced/ avoided, compared to national building requirements

350 tonnes1,3

– Attributable to Green Bond 250 tonnes3 CO2e


350 tonnes3 CO2e

– Attributable to Green Bond 200 tonnes3 CO2e


Percentage of materials being used acecpted in Byggvarubedömningen4

92 %

Waste management

Energy efficient and resource-preserving waste treatment

Material recovery rate 97.5 % incl. energy recovery

The 97,5 % consists of: material reuse (construction materials) 16 %, material recovery 29 % and energy recovery 52 %, landfill 2,5 %. Benchmark: National average for the service provider contracted by NKS (SITA Sverige/Suez recycling) was 92 % for 2017.

1 Assumption on distribution between district heating and electricity in accordance with BBR19. Emissions for purchased energy are 10,5 g/kWH for electricity (Vattenfall, EPD for waterpower, Bra Miljöval) and 26 g/kW for district heating (Telge Energi).

2 Rounded per 100 MWH. 3 Rounded per 50 tonnes. 4 Only products covered by Locums policydocument R.24 ”Riktlinje val av produkter” (Guideline for choosing products)

and Miljöbyggnad manual 2.2 are reported.


The entrance to New Karolinska Solna.

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Karolinska University Hospital, SolnaNew 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 revised structure of the system of hospitals in Stockholm addresses the healthcare needs for an increasing population, where the most highly specialized care will be provided at certain units, such as NKS. Care is provided accord-ing to themes, making the patient’s overall medical needs even more central. Single patient rooms, an increased number of operating rooms and landing space for two helicopters are examples of improve-ments that will fulfill future needs for advanced healthcare.

To achieve the exceptional environmental and sustainability goals that were set for NKS, the entire project has been carried out from a sustainability perspective, from the choice of materials to the design of the building. NKS was built to achieve the highest quality indoor environment, for example air quality, inflow of day light and temperature for the benefits of both patients and staff.

One of the tools used is environmental certification of the buildings. Two types of certification schemes have been used for NKS; Miljöbyggnad issued by the


Sweden Green Building Council, and LEED, an inter-national green building rating system. The aim is to achieve the Gold level in both systems. In September 2018, the fourth and final construction phase was approved for preliminary Gold level certification in accordance with Miljöbyggnad 2.0. Final certifica-tion will be available when the entire building perfor-mance has been verified with measurements and fol-low-up. This verification is currently being finalized.

NKS has been constructed for significantly reduced energy consumption, the target is 50 per cent below the requirements set by Sweden’s Building Regulations5. This means substantial savings, both financial and environmental. By switching to renew-able energy, emissions of greenhouse gases will be minimized. 100 per cent of the electricity comes from renewable sources6, and a large geo-thermal facility produces most of the buildings’ heating and cooling.

Another focus area has been to reduce the use of chemicals and hazardous substances. Thanks to the deliberate choice of flooring material, a significant reduction in the use of softeners with an adverse impact on health has been achieved (at least 70,000 kg compared with conventional construction), and this is only one of all the materials used in the construction.


Karolinska University Hospital, Solna


Renewable energy6

Geothermal energy

Capacity of energy generation of plant

36 000 MWh1 Ex post calculations

Annual renewable energy generation

34 000 MWh2

Used renewable energy 27 000 MWh2

– Attributable to Green Bond 3 700 MWh2


4 100 tonnes CO2e3

– Attributable to Green Bond 600 tonnes CO2e3

Green buildings6



17 000 MWh4 Ex post calculations. Result is 45 % below Swedish national building code BBR16.

– Attributable to Green Bond 2 400 MWh4

Annual GHG emissions reduced/ avoided, compared to the rele-vant building code

4 700 tonnes CO2e5



6 100 tonnes CO2e5



Percentage of materials being used acecpted in Byggvarubedömningen

89 %

Clean transportation

Infrastructure for electric vehicles

Percentage of parking spaces reserved for electric vehicles

10 % 0 % (no local/national legal requirements)

Total charges made 122 000 kWh

– of which Green Bond 17 000 kWh

Estimated savings in GHG emissions

50 tonnes CO2e Basis for saving is total green financing (40 % of financing) equalling 48 300 kWh

Waste management


Material recovery rate 95 % incl. energy recovery

National average for the service provider contracted by NKS (SITA Sverige /Suez recycling) was 92 % for 2017.

1 Capacity is based on total actual production 2019. This is a change in method from year 2018 when ingoing electricity was substracted. The facility also recycles energy from the buildings. Rounded per 1 000 MWh. 2 Annual renewable energy generation (formerly Actual production) is defined as total renewable generation minus ingoing electricity. The facility also recycles energy from the buildings. The method for reporting energy generation changed in 2019, and energy used in the facilities is reported under the indicator introduced in 2019: Used energy. Rounded per 1 000 MWh. 3 Calculated using baseline emission values from Apendix A (combined margin applied by nordic issuers) and Apendix B (the same baseline emission factor has been applied for district cooling as for district heating) compared with actual electricity mix and local mix of district heating and district cooling. Rounded per 100 tonnes. 4 Measured value for MWh. Rounded per 1 000 MWH. 5 Calculated using baseline emissions from Apendix A (combined margin applied by nordic issuers) and Apendix B (the same baseline emission factor has been applied for district cooling as for district heating) compared with actual electricity mix and local mix of district heating and district cooling. Rounded per 100 tonnes. 6 Assumption on distribution between district heating and electricity in accordance with BBR16. Emissions for purchased energy are 10,5 g/kWH for electricity (Vattenfall, 100 per cent renewable energy, waterpower Bra Miljöval) and 0,6 and 3 g/kW for district heating and district cooling (Norrenergi).


Södersjukhuset ABThe new construction of Södersjukhuset AB (Framtidens Södersjukhus) is part of Region Stockholm’s future plan for health care. The future plan is one of the largest investments made in health-care in the Stockholm region. Södersjukhuset AB is an emergency hospital located in central Stockholm. During the project Framtidens Södersjukhus, which was completed in 2019, Södersjukhuset AB has expanded by approximately 50,000 square meters and was enhanced with a new service area, a new

emergency department, a care building with single patient rooms and a treatment building with new surgery rooms. All three buildings were built at the same time with maintained care capacity. In addi-tion, new streets and park areas were created to suit the new buildings and to make the local environment more attractive and increase the availability in the area for inhabitants of the city. The three new buildings have been constructed in accordance with Miljöbyggnad 2.2 and all three projects have

Södersjukhuset AB


Green buildings1, 2



2 100 MWh The new construction consists of three buildings (70,72 and 74). Swedish national building code BBR21 was used for all buildings, whereas the energy requirements varies according to the use of each building.

– Attributable to Green Bond 600 MWh


450 tonnes3



300 tonnes3



Percentage of materials being used acecpted in Byggvarubedömningen4

95 % Building 70: 98 % approved materials, building 72: 97 % approved materials, building 74: 91 % approved materials.

Waste management


Material recovery rate 94 % recovery incl. energy

Building 72: Material reuse and recycling 52 %, energy recycling 41 %, landfill 6 %, building 70 and 74: Material reuse and recycling 44 %, energy recycling 51 %, landfill 5 %. Excluding hazardous waste. Benchmark: National average for the service provider contracted by NKS (SITA Sverige/Suez recycling) was 92 % for 2017.

1 Assumptions on repartition between electricity, district heating and district cooling in relation to BB21. CO2equivalents per kWh for used electricity from Vattenfall, EPD for waterpower. 10,5 g/kWh (Bra Miljöval). CO2equivalents per kWh for used district heating from Region Stockholms climate calculator 2020, 65 g g/kW, Stockholm Exergi. Estimated 3g CO2e/kWh for district cooling with Norrenergi as reference.

2 All data concerning volumes of electricity, heating and cooling are based on energy calculations from Locum 2018–2019. Values used include 10 per cent safety margin for building 70 and 72 and 5 per cent safety margin for building 74.

3 Rounded per 100 MWh and 50 tonnes. 4 Products reported are those covered by Locums policydocument R.24 ”Riktlinje val av produkt – Bedömningskriterier”

(Guideline for choosing products) and Miljöbyggnad manual 2.2

18

received an overall preliminary rating level Gold. In a few years, a verification of the certification will take place. One of the indicators from Miljöbyggnad linked to indoor environment is daylight that affects the healthcare professionals, patients and visitors. One example of adding daylight is the new care build-ing that holds an indoor courtyard that contributes to more rooms and increased climate comfort. One of the new buildings won the award “Årets Miljö-byggnad” which is Sweden’s most prestigious price for sustainable construction. Below you can read the jury’s motivation.

With support from a clearly designed sustaina bility strategy, with the goal of certifying all new construction projects according to Miljöbyggnad, this year’s winner has certified a very technically complex building at the Gold level in 14 of 15 indicators. Difficult challenges in a hospital building, such as daylight, ventilation and thermal climate, have been solved through good collaborations and smart solutions. It is a well-executed and ambitious work, where the environmental benefits will benefit staff and patients for a long time to come. This makes building 72 at Framtidens Södersjukhus a worthy winner of the Environmental Building of the Year in 2018!”

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Roslagsbanan expansion programme The Roslagsbanan expansion programme is designed 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 the Stockholm Region. Creating the opportunity for more people to travel by train which is more climate smart than driving a car.

The overall goals of the programme are:• Increased capacity to meet increasing travelling

needs• Allowing eight trains per hour service for the

most frequently visited stations• Reduced sensitivity to traffic disruption• Confining with noise limits indicated in the

Government’s Infrastructure Bill7 for a new railway construction

• Adapting stations and existing carriages for incre-ased accessibility

• Improved safety in the rail system regarding the rail operation, as well as safety improvements along the tracks and for the passengers travelling with Roslagsbanan.

In addition to promoting climate efficient travelling, the programme includes many environmental and social initiatives. There is a large focus on reduced environmental impact in the building process and in the processes for designing and manufacturing trains. Reduced impact on the climate is an overall goal and criteria applied in the supplier chain. Another area is the selection of products and mate-rials that are better for health, safety and environ-ment. In the Roslagsbanan expansion programme more than 1 000 used products/materials have been registered and evaluated through a system called Byggvarubedömningen8, which assists Region Stockholm to choose products and materials with less environmental impact, and materials that are preferable in regard to working conditions. Additionally, during 2020 the project “Apple tree grove” was carried out. The apple tree grove is a project along Roslagsbanan where apple varieties from Bergianska garden’s gene bank are planted in traffic- friendly environments where passengers pass through. The project promotes cultivated and

7 Proposition 1996/97:53 https://www.riksdagen.se/sv/dokument-lagar/dokument/proposition/infrastrukturinriktning- for- framtida-transporter_GK03538 https://byggvarubedomningen.se/in-english/


biological diversity and contributes to a pleasant passenger environment with the possibility to pick an apple as a snack.

Other examples of the sustainability work performed during 2020:• Control of social aspects in the supply chain for

production of steel and aluminum used in the new train cars

• Local stormwater management as an ecosystem service to support biodiversity and human habitats

• Re-use of railway sleepers and other material • A pilot-test with a new kind of sleeper in the

railway switches. The impregnation system is more environmentally friendly and better for health and safety.

Noise poses a problem to individuals’ wellbeing and health, and the Roslagsbanan expansion pro-gramme involves a substantial effort to introduce noise-protection measures along the track creating a better living environment for up to 10 000 people. This is executed through 30 km of noise barriers along the tracks and nearly 1 000 individual actions on residential houses, such as new and improved windows, glass-paneling on balconies and ventilation.

Roslagsbanan expansion programme



Expansion of Roslagsbanan local train line

Net avoided emissions from cars and other vehicles

10 000 tonnes 165 grammes CO2e/km (190 grammes/km WTW; 1,15 passengers per car)1, 300 days a year, 40 car kilometers/person/weekday.

– Attributable to Green Bond 8 200 tonnes

Number of people in new means of transportation

5 000 passengers/ travelday

– Attributable to Green Bond 4 100 passengers/ travelday

Estimated reduction in car kilometers the project will replace

60 700 000 km 40 car kilometers/ person/day based on geographic average distance

– Attributable to Green Bond 49 700 000 km

Environmental management

Wildlife preservation

Examples of activities and investments in wildlife preservation that have been carried out so far (ackumulated)• Two nature passages • Approximately 11 fauna passages under the railway • One playroom for sea trout • Approximately 400–500 evacuation pipes in cable wells• One hotel for salamanders • Several culverts are demolished to create open ditches • Many stems are saved as insect hotels • A preserved and protected woodland, key habitat for rare and endangered species

1 This value has been updated in 2020 to include life cycle emissions (WTW, Well to Wheel) and has a new source Trafikverket 2019.

The apple tree grove – a project along Roslagsbanan where apple varieties from Bergianska garden’s gene bank are planted.

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Metro Red Line programme The upgrade of the Metro’s Red Line creates a possi-bility for more people to travel by public transporta-tion, which is one of Region Stockholm’s main meas-ures of reducing negative environmental impact in the Region. The upgrade of the Metro’s Red Line aims to develop and strengthen capacity and thereby contribute to a more resilient and sustaina-ble public transportation. To achieve this goal investments are being made in the following areas: • Upgrade of two depots, Hammarby and Nyboda• Upgrade of two stations, Norsborg and Hallunda• Building of a new depot in Norsborg• The new vehicle, C30, have a more energy efficient

propulsion system and is also expected in overall to achieve a less energy usage than the older ones even when energy for the new implemented AC-systems in the trains are included.

In addition to developing and strengthen the capacity of the red line, the travelers will be able to ride with improved accessibility, more comfortably and safer than before. Twelve of the total 96 new vehicles, have been delivered during 2020. The com-ing years around 25 new vehicles will be introduced each year and the last ones will be delivered in 2024.

To store and service the new vehicles, depots have been built and upgraded.

The travel environment has also been improved at the stations Norsborg and Hallunda with new glass sections with automatic doors, new glass walls between lifts and escalators and new public artwork which light up the stations.

Metro Red Line programme



Expansion of Metro Red Line

Net avoided emissions from cars and other vehicles

4 700 tonnes CO2e 165 grammes CO2e/km (190 grammes/km WTW; 1,15 passengers per car)1, 300 days a year, 40 car kilometers/person/weekday.

– Attributable to Green Bond 1 200 tonnes CO2e

Number of people in new means of transportation

6 800 passengers/ travelday

N/A

– Attributable to Green Bond 1 700 passengers/ travelday

Estimated reduction in car kilometers the project will replace

28 400 000 km 14 car kilometers/ person/day

– Attributable to Green Bond 7 013 000 km

1 This value has been updated in 2020 regarding the distance travelled, from 17,5 km to 14 km. Source: Resvanor i Stockholms län 2019.

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Extension of the Metro in Stockholm The extension of Stockholm’s metro is the largest investment in the subway system in modern times. 19 kilometers of new track and 11 new stations divided into four sections are being built and around year 2026 the metro service will operate between Nacka C, Barkarby station and Arenastaden. Today, the number of vehicles and the capacity of the depots fall short of the requirements necessary for the successful extension of the planned Metro. More vehicles and depots with greater capacity for servic-ing vehicles are needed for the metro extension. The extended metro will be an additional resource- efficient and climate-smart travel alternative to fossil-fueled means of transport. During the project, environmental and sustainability aspects have been considered in every area. The metro extension will have a significant climate impact during its con-struction phase, but from a life-cycle perspective the effect is positive considering the avoided carbon

emissions during years to come. Multiple measures are planned to reduce the climate impact in the con-struction phase, such as optimization of material selection and consumption and reduction of the number of transports in the construction phase.

Region Stockholm’s extended metro administra-tion is environmentally certified according to ISO-14 001. Through climate calculations, Region Stockholm monitors the climate impact of stations right from the design stage. The project’s sustaina-bility coordinator provides support and monitors sustainability issues in every project. The certifica-tion system CEEQUAL9 is used to ensure that Region Stockholm’s strategic environment work is integrated into the planning and project engineer-ing of all sub- projects. The objective is to achieve the rating of Very Good10 as a minimum.

Depot for extended Metro in Högdalen The object of the Vehicle-Depot project is to rein-force the capacity at the existing Högdalen depot by several measures, promoting the resilience and capacity of the overall metro system. The Högdalen maintenance facilities depots will be expanded and the connection possibilities to the depot will be extended to be accessible to both the green and the blue lines. All these measures will make it possible to increase the number of vehicles which is needed. The project is vital for ensuring that the finished metro lines will be fully operational for the sched-uled launch of service. At the same time, an upgrade is being performed on the vehicle fleet and the trans-port systems. Reinforcing sustainable transport systems reduces the level of carbon dioxide emis-sions in Region Stockholm. The project has the objective of achieving the rating of Very Good as a minimum. Multiple measures are planned to reduce

9 CEEQUAL is a sustainability assessment, rating and awards scheme for civil engineering, infrastructure, landscaping and public realm projects. CEEQUAL was developed by the British industrial association Institution of Civil Engineering (ICE) and was launched in 2003 int the UK and Ireland.10 The rating Very Good is the second highest rating on the scale and means that the project will receive more than 60 per cent, but less than 75 per cent of the total points.

the climate impact in the construction phase of the depot. An above-ground garage with a timber frame is planned, which will provide an estimated climate improvement of around 165 tons of carbon dioxide equivalents compared with a steel frame. On the access tunnel at Hökarängens subway station a green roof is planned to function as a delay of storm-water but also give the surroundings a greener impact. The depot has also been constructed to ena-ble the installation of solar cells on buildings above ground and the entrances to the garage are placed below ground, cutting the heating costs. Constant optimizations are made to reduce resource con-sumption, especially the amount of concrete that is used. The contractors are encouraged to work with methods and material to reduce the climate effect such as use of green asphalt, lightweight concrete and reuse of stormwater on the building site.


Social sustainability

Region Stockholm first out to issue a Health Impact Bond with a unique bond model Region Stockholm has issued SEK 30 million in a unique Health Impact Bond where the proceeds will be used to fund a pilot project for type 2 diabetes prevention for up to 925 prediabetic individuals in the greater Stockholm area. This financial bond model, where the return is linked to how successful the preventive work is, has been developed in coop-eration with Skandia and SEB and is the first of its kind, even internationally.

Region Stockholm is first out to issue a Health Impact Bond with a unique financial structure. This first pilot has one investor, Skandia. But the documentation for the Health Impact Bond is based on standard bond documentation to facilitate the creation of new Health Impact Bonds with other issuers than Region Stockholm and other investors than Skandia.

The structure of the Health Impact Bond is a combination of a fixed underlying 5-year Region Stockholm bond with a zero-coupon structure and a variable portion whose return is based on the cost savings achieved by the diabetes prevention effort. The investor’s total return will thus consist of the combined return of “the ordinary” bond issued by

Region Stockholm and the return based on the diabetes prevention effort.

The upside of the return is limited by a cap (the maximum accumulated return over the 5-year period is 10 per cent), while the downside is limited by a floor (the minimum accumulated return over the 5-year period is –20 per cent). No payments will be made during the bond’s tenor; repayment of the nominal amount and any variable return (positive or negative) will be made upon maturity (i.e. after year five).

The prevention programme uses a digital tool to gather a number of health services and providers, and also the help of health coaches to personalise a prevention programme for each individual. Tied to the digital platform are a number of service provid-ers in various areas such as physical activity, diet, sleep, stress, etc. The party conducting the preven-tion programme is Health Integrator AB.

– Pre-empted health care is important really to take care of the problems we have in society, and there is also a need for new alternative financing models, says Lars-Göran Orrevall.

Skandia is a life and health insurance company and we have a long-term objective of looking at health preven-tion. We have created a new innovative health bond where we are linking together investment return with pre-empted health care in the area of diabetes.”

Lars-Göran Orrevall Chief investment Officer at Skandia.

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Facts about the Health Impact Bond

• The Health Impact Bond is a bond issued on the financial market where the proceeds, SEK 30 million, will be used to fund a type 2 diabetes prevention programme for up to 925 prediabetic individuals aged 50–60 years in the county.

• The Health Impact Bond is specifically adapted for institutional investors. The creation of the Health Impact Bond can be a model for similar initiatives, making it easier to enable investments of large amounts of capital in other diabetes projects or within other health areas.

• The prevention programme will be conducted over a five-year period with an intensive phase during the first two years, and a follow-up phase during years three to five.

• The metric that determines the return of the Health Impact Bond is the long-term blood sugar and a participant is calculated as a success as long as the participants’ long-term blood sugar value are within normal range at the end of the program.

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Documents

REGION STOCKHOLM GREEN BOND - sll.se...Region Stockholm reports its Green Bonds impact in accordance with the Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting,