Hydro One Limited has published its Sustainable Financing Framework, a primary for a utility in Canada. The framework allows Hydro One and its subsidiaries to issue sustainable financing instruments, corresponding to sustainable and green bonds, and allocate the web proceeds to investments in eligible green and social project categories.
The project categories include: clean energy, energy efficiency, clean transportation, biodiversity conservation, climate change adaptation, socio-economic advancement of Indigenous peoples and access to essential services (corresponding to the electrical grid and enablement of high-speed broadband web).
“Aligning our funding strategy with our sustainability goals will further our journey towards a more equitable and sustainable future through expenditures that contribute to the well-being of the people, planet, and communities we serve. Ontario is already home to one in all the bottom carbon-emitting electricity grids in North America and Hydro One is uniquely positioned to enable the energy transition to attain the shift to a low-carbon economy,” said Chris Lopez, chief financial officer of Hydro One.
The framework has been reviewed by Sustainalytics, a worldwide leader in providing environmental, social and governance (ESG) research and evaluation. Sustainalytics issued a second party opinion confirming that the Framework aligns with the International Capital Markets Association (ICMA) Sustainability Bond Guidelines 2021, Green and Social Bond Principles 2021 and the Loan Syndications and Trading Association (LSTA) Green and Social Loan Principles 2021. CIBC Capital Markets and Scotiabank acted as sustainable structuring agents for the framework.
The corporate will provide annual updates regarding using net proceeds of any green and/or sustainable financing, until the web proceeds of any such financing are fully allocated to eligible projects.
Copies of the Framework and Sustainalytics’ second party opinion can be found on the Company’s website at: https://www.HydroOne.com/SustainableFinancing
Featured image credit: Hydro One.