The company
Loimua is an energy company headquartered in Hämeenlinna, Finland, specialising in the production and distribution of district heating, as well as energy services.
Loimua addresses the high structural demand for heating in Finland, with a country average annual temperature of around 2°C. This situational context underscores the importance of heating in meeting the nation's energy needs efficiently and sustainably.
Loimua in numbers
16District heating networks
2019First year of submitting ESG metrics to CVC DIF
11%Annual improvement in ESG metrics performance
Upfront ESG due diligence considerations by CVC DIF
We analysed Loimua’s fuel mix, which was higher than the industry’s average. In addition, we scrutinised plans for future increases in biomass utilisation, considering availability and expected price fluctuations.
We analysed climate change impacts & energy efficiency, confirmed by external ESG advisors. This was relevant for us as it allowed us to fine-tune financial forecasts.
Our ESG due diligence extended into regulatory compliance. This was relevant for us as it ensured that we understood and could subsequently manage any potential regulatory challenges.
We assessed Loimua’s environmental and health & safety practices. Given its longstanding certifications and successful bioconversion processes, resulting in a significantly lower CO2 footprint and other signs of environmental stewardship and operational excellence, we felt comfortable that Loimua would be a responsible investment from a sustainability perspective.
Loimua’s proactive approach to the ESG path highlights its leadership in sustainability and responsible corporate behaviour.
ESG Path
Loimua has set a firm goal to become carbon-neutral in its heat production by 2030. Progress towards this goal includes substantial increases in the use of renewable resources, with about 88% of its heat production already derived from renewable sources. This is significantly higher than the national average in Finland.
The company has also invested in new district heating boilers and heat recovery systems that contribute to increased energy efficiency and reduced carbon emissions. Through these initiatives, Loimua not only advances its net-zero objectives but also supports the broader transition towards a sustainable energy future, aligning with global efforts to combat climate change.
The team's commitment has resulted in the successful completion of a high percentage of ESG-related actions, reflecting the company's effective approach to integrating sustainable practices.
Focus areas have included renewing ABC training, developing a biodiversity roadmap, and enhancing calculations of Scope 3 emissions. These are all crucial for reducing environmental impact and fostering sustainable business practices.
Looking ahead, Loimua is preparing to tackle actions necessary for aligning its reporting with the Corporate Sustainability Reporting Directive (CSRD), ensuring transparency and compliance with upcoming regulatory changes.
TODO: link should link to report
The materiality of ESG
Loimua’s strategic emphasis on sustainability has enabled it to secure more favourable refinancing terms, reducing capital costs and enhancing financial flexibility for further investments in green technology.
This financial optimisation under CVC DIF’s fund ownership attracted strong support from debt providers, emphasising the market’s confidence in stable, sustainable businesses like Loimua.
