Finland: EIB renews support for SATO’s energy efficiency efforts

• The EIB is lending €80 million to SATO Oyj to refurbish 25 residential buildings in Finland to higher energy efficiency standards.
• The buildings, located in Helsinki and other metropolitan areas in Finland, will be renovated to reduce their consumption by more than 30%.
• Works are in line with building renovation standards as defined by the Finnish Government and confirmed by the European Commission’s Renovation Wave.

The European Investment Bank (EIB) is renewing its support for Finnish real estate developer SATO with a €80 million loan that will help the company redevelop 25 properties. The main focus of the project is to refurbish existing buildings in Helsinki and other metropolitan areas such as Turku and Tampere, improving their energy efficiency by at least 30%, with the overall goal of reducing energy consumption and lowering CO₂ emissions, thus contributing to EU climate impact mitigation objectives.

“In the light of the European Green Deal and its Renovation Wave we must not forget that new construction, although sometimes obviously necessary, emits a lot more CO₂ than renovating a building,” said EIB Vice-President Thomas Östros. “Next to this, investing in energy efficiency is one of the most cost effective and rational ways to curb carbon emissions and we are glad we can support SATO in this. This project is not only a step forward in sustainable urban development in Finland, but should also lead to a reduction in energy consumption for residents, thus lowering energy bills.”

“In line with our strategy, we offer our residents sustainable housing. We seek energy efficiency improvements in many different ways in our properties and always explore the best solutions specifically for each property. Our renovations involve energy efficiency improvements through measures such as switching the property heat source from district heat to geothermal heat as well as introducing heat recovery ventilation and LED lighting. Energy efficiency can also be increased by changes such as adjusting and balancing the heat distribution system, replacing or repairing the windows, and adding roof and wall insulation,” said SATO President and CEO Antti Aarnio.

The renovated buildings will be upgraded to comply with the optimal cost levels as defined by the Finnish Government. Due to interventions in energy efficiency as well as small renewable energy projects, the works are expected to generate primary energy savings of 7 235 MWh/year of final energy, roughly equal to 1 109 tonnes/year of CO₂ savings. Building renovation is one of the key sectors in the 2030 EU CO₂ mitigation scenarios, and the Green Deal’s “Renovation Wave”, as buildings are responsible for 40% of energy consumption in the European Union.

Background information:

In 2020, the EIB made in excess of €676 million in loans available for Finnish projects. The EIB borrows money on capital markets and lends it to projects that support EU objectives, with about 90% of all loans being granted within the European Union.                                                    

SATO is a leading Finnish housing investment company holding roughly 26 600 rental homes in Finland's largest growth centres and in St Petersburg. SATO seeks ongoing customer service improvement, creation of value added for its shareholders and an inspiring corporate culture for its personnel.