Executive summary
In October 2022, TOMRA issued NOK 1 billion in green bonds under its newly established Green Bond Framework, receiving a "Dark Green" rating and a "Good" governance score from CICERO Shades of Green. This landmark issuance underlined TOMRA’s role as a global leader in circular economy solutions, leveraging advanced recycling and resource optimisation technologies.
By financing projects such as reverse vending machine (RVM) expansion, waste sorting innovations, and sustainable operations, TOMRA is driving impactful change. With its comprehensive governance framework and sustainability targets, TOMRA’s green bond issuance reflects a commitment to transforming resource use while addressing global environmental challenges.
Pioneering sustainability in global markets
TOMRA, a Norwegian circular economy pioneer, operates in over 80 markets, providing innovative technologies for recycling, food sorting, and waste management. With a mission to "lead the Resource Revolution," TOMRA’s solutions address critical sustainability challenges such as resource scarcity and plastic pollution.
In 2022, TOMRA launched its Green Bond Framework to finance and refinance projects for pollution prevention, material recovery, and operational sustainability.
“TOMRA is committed to enabling better use of resources and a more sustainable planet for generations to come. We aim to increase our positive impact going forward, and our Green Bonds are a key tool in supporting our sustainable growth strategy,” says Eva Sagemo, TOMRA Group CFO.
Overcoming challenges in resource management
TOMRA faced several challenges in scaling its circular economy solutions:
Resource scarcity: With only 7% of global resources recycled, scaling recycling technologies is vital.
Stakeholder alignment: Establishing trust and collaboration among policymakers, investors, and recyclers to expand deposit return schemes (DRS).
Sustainability gaps: Addressing lifecycle emissions in its operations, including transportation and materials sourcing.
Regulatory pressures: Adapting to evolving international frameworks such as the EU Single-Use Plastics Directive and the Paris Agreement.
These challenges underscored the need for robust governance, technological innovation, and impactful sustainability initiatives.
Innovative financial strategies for impact
TOMRA’s Green Bond Framework enabled financing for a wide array of projects:
Reverse vending machine expansion: Investments in RVM manufacturing, installation, and operation, enabling the collection of over 40 billion beverage containers annually.
Advanced waste sorting: Research and development into sensor-based technologies for recycling plastics, metals, and textiles.
Sustainable operations: Initiatives such as on-site solar energy generation, clean transportation, and using sustainable materials in TOMRA’s products.
Advocacy and outreach: Supporting regulatory frameworks for global deposit return systems to scale closed-loop recycling.
CICERO’s second opinion validated TOMRA’s governance and project selection processes, ensuring transparency and alignment with global green finance standards.
Delivering measurable sustainability outcomes
TOMRA’s green bond program delivered significant outcomes:
Resource recovery: Financed collecting over 6.2 billion used beverage containers between 2020 and 2023, contributing to significant carbon savings.
Climate mitigation: Avoided 19.5 million tonnes of CO₂e annually through its recycling technologies.
Market leadership: Cemented TOMRA’s position as a leading circular economy enabler, with 110,000 installations worldwide.
Sustainable development goals (SDGs): Advanced SDGs 12 (Responsible Consumption and Production) and 13 (Climate Action) through innovative solutions and collaborations.
Collaborating to unlock the circular economy with green bonds
The collaboration with trusted advisors like DNB and Nordea fostered a robust program for TOMRA’s green bond issuance. These financial institutions provided critical insights into structuring the bond and engaging the investor community. Unlocking circular economy opportunities required navigating complex regulatory landscapes and aligning diverse stakeholders, including governments, policymakers, and recyclers.
TOMRA’s success hinged on fostering partnerships with these entities to advocate for deposit return systems and encourage global adoption of recycling technologies. The collaboration’s strategic approach advanced TOMRA’s goals and laid the groundwork for systemic change in resource management.
Advancing circularity through strategic partnerships
TOMRA’s green bond framework sets the foundation for scaling its circular economy initiatives globally. With ambitious targets to double avoided emissions by 2030 and transition to net-zero operations by 2050, TOMRA is well-positioned to drive systemic change. By leveraging its innovative technologies and collaborative approach, TOMRA aims to enable a future where resources are managed sustainably and waste becomes a thing of the past.
As of October 2023, TOMRA holds an A- issuer rating based on its strong business and financial risk profiles. This reflects its leadership in circular economy solutions, stable profitability in key segments, and supportive industry dynamics. The outlook remains stable, with anticipated improvements in profitability and leverage following ongoing restructuring, positioning TOMRA for continued growth in the coming years.
TOMRA’s green bond issuance showcases the power of sustainable finance to drive innovation and impact in circular economies. By aligning its financial strategy with its sustainability mission, TOMRA has delivered measurable results and set a benchmark for green finance. TOMRA’s approach offers a replicable model for success for organisations looking to achieve ambitious sustainability goals.
Bjarni Herrera, as COO of CICERO Shades of Green, Bjarni Herrera oversaw the second opinion process with a strong team of analysts, including Knut Alfesen, Senior Advisor, ensuring alignment with the Green Bond Principles and other international standards and guidelines, enabling TOMRA to secure its "Dark Green" rating. The framework exemplifies TOMRA’s ambition to enable circular economies and contribute to global climate goals.
Contact Accrona to learn more about empowering sustainability through innovative finance solutions and tap into our extensive expertise in structuring and assessing green finance opportunities, particularly in the circular economy. Our experience working with leading financial institutions in the Nordics and Europe, including DNB and Nordea, ensures seamless collaboration and strategic alignment.