Assessing Elekta’s ESG metrics for sustainable finance

The ESG project 

Elekta is a Swedish healthcare company that specializes in cancer diagnostics and brain disorders. To raise further finance for research programs, they turned to Danske Bank and DNV to issue a sustainability-linked bond framework for potential investors. 

Prior to the issuance of the bonds, Elekta required an assessor with in-depth knowledge of the medical industry to assess the bond framework to ensure that it is robust. DNV was selected as a second-party opinion (SPO) provider to assess whether the bond framework is aligned to the International Capital Market Association (ICMA) principles for the sustainability-linked bonds. An SPO provides investors with confidence in the credibility of a bond framework that is aligned with both with the relevant principles, but also has realistic, yet ambitious, sustainability metrics that are aligned with the company strategy and best industry practices.

Bringing ESG to life

DNV assessed the sustainability-linked bond framework that Elekta developed in cooperation with Danske Bank. The framework was checked against ICMA’s principles and best practice in the healthcare industry. Metrics or key performance indicators (KPIs) must be specific, measurable, ambitious and have identified milestones in order to qualify as a criteria that investors can track. By drawing on DNV’s expertise in the healthcare industry, DNV could assess the sustainability profile of Elekta’s strategy, assess whether the goals and performance data were credible and suitable as requirements of the bond. 

Elekta’s stated vision is to increase availability of cancer care in underserved countries. To achieve this, Elekta have set a target to increase access to radiotherapy by increasing the number of linear accelerators used for cancer treatment, as well as address the infrastructure challenges with delivery and competence to operate the devices. In the sustainability-linked bond, Elekta have committed to increase the installed net base of linear accelerators in underserved markets by 825 units by end of April 2025. If they reach this goal, Elekta will help more than 300 million additional people gain access to cancer care via Elekta’s installed base. 

DNV assessed Elekta’s ESG metric and determined that this qualifies as a relevant, material and ambitious goal for the issuance of a sustainability-linked bond. The sustainability-linked bond was issued at the end of 2021 and was oversubscribed.

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