Taking a Transparent Approach to ESG

László Fazekas, CFO and deputy CEO of MVM Group, discusses the reasoning behind and aspirations for the Hungarian power company’s newly announced Green Financing Framework and how it intends to become carbon neutral by 2050.

By BBJ Staff

BBJ: MVM announced its Green Financing Framework on May 30 to help meet its Paris Agreement climate targets. Why publish the framework now, and what does it set out to achieve?

László Fazekas: In December 2022, MVM adopted its ESG strategy and accompanying KPI set to formalize the group’s ESG-based sustainability framework and ESG commitments. Right after that, MVM started working on a financing framework to support realizing its business plan with funding sources. MVM chose its Green Financing Framework following the International Capital Market

Association’s Green Bond Principles because it seemed the best fit for our green goals. We also hope that the special attention paid to our green efforts through the Green Financing Framework’s transparency and reporting obligations will help the market, including our customers, better understand our ESG strategy and objectives.

BBJ: Fitch has given your planned U.S. dollardenominated bonds a senior unsecured rating of “BBB.” MVM intends to use the net proceeds from the bonds to finance and/or refinance eligible green projects. How much are you expecting to raise through the issuance?