Why was now the right moment for TRATON to launch its Green Finance Framework?
Lotz: We have put in place our conventional capital markets infrastructure — external ratings, EMTN and CP programs, a syndicated RCF. The logical next step was to make use of our investments in battery-electric vehicles (BEVs) under a group-wide Green Framework. The transition from ICE mobility to BEVs is one of the cornerstones of the TRATON GROUP strategy. We already have a strong pipeline of BEV-related use cases and the newly established TRATON Green Finance Framework will help us finance this transition.
von Platen: The market for green finance continues to grow. In some industries, introducing a green framework now might seem late in the game. But in this sector, the only example of green bonds being issued is basically Scania — part of the TRATON GROUP. The transition to sustainable transportation in the sector is no longer a distant goal; it is happening now. That plays to the strength of the new strategy, which is not only about regulatory alignment, but about actively driving that transition.
What are the stand-out features of TRATON’s Green Finance Framework?
Lotz: A key feature of the Framework is its lean and clear structure, focused on BEVs. This aligns directly with the ICMA Green Bond Principles category for Clean Transportation. Decarbonisation is also a key part of our broader corporate strategy. Investors recognised this during our recent non-deal green roadshow — the framework is simple in a positive sense, giving clarity about what to expect.
Having one group-wide framework that spans multiple brands, business segments and regions is a significant achievement for us. Departments from treasury, sustainability, ESG, accounting, controlling, communications and investor relations all worked together. Going through that process has further strengthened collaboration across our teams.
von Platen: In the bond market you often see issuers adding more and more categories to broaden the use-of-proceeds pool. But when speaking to investors, it is clear they prefer frameworks that focus on core business areas. TRATON’s framework provides a high level of transparency — going beyond market practice, especially in the detail provided for the use of proceeds category. Where others may give only a short description, this framework sets out what R&D covers and what BEV investments entail. Investors responded very positively to that level of detail in TRATON’s Green Roadshow.
The framework follows the ICMA Green Bond Principles (GBP) rather than the new EU Green Bond Standard (GBS). What guided that choice?
Lotz: When we began this project in Q1 2025, the EU Green Bond Standard had only recently been introduced. Just over a dozen of issuers have used it so far — mostly from the utility sector, not capital goods companies. It therefore made sense to us to build on the established ICMA format. EU GBS may however evolve in the future. We will continue to monitor developments and might adapt, but for now its track record is limited in our sector.
von Platen: The Green Bond Principles have been in place since 2014 and most issuers align with this structure. The EU GBS is promising but not yet fully developed. Some requirements will not be fully implemented until 2026. Reviews are still made on a best-efforts basis and you can argue there are still uncertainties in the standard. Importantly, investors still want EU GBS issuers to align with the ICMA GBP. For us, the decision was clear.
Some observers talk about an “ESG backlash,” particularly in the US. How do you see investor sentiment in Europe?
von Platen: It is important to look through the headlines, which can give the impression of a global backlash against ESG. In Europe, commitment and demand remain strong. Year-to-date, we have seen close to €10bn flow into euro investment-grade credit funds with a sustainability focus. This has happened despite the recent ESMA update on fund-naming rules, which prompted some managers to adjust labels out of caution rather than due to falling demand. Looking through that short-term noise, underlying investor appetite remains strong, and we see no sign of capital allocation to sustainable strategies declining.
Lotz: During our recent non-deal green roadshow the feedback gathered shows that there continues to be great demand in the green market. Outside of the roadshow we continue to receive reverse inquiries from investors. We have received dedicated questions on our sustainability strategy and our reporting schemes. That’s clear evidence that demand continues. We’re convinced liquidity is higher in green transactions — positively facilitating volume, if not pricing. Our financing framework is also not just a bond framework. It also allows for additional instruments — particularly loans. In that field we have tangible demand on the table. It’s smaller and less transparent but it’s important evidence that lender appetite is there.