Hydro One Limited has published its Sustainable Financing Framework, a first for a utility in Canada. The framework allows Hydro One and its subsidiaries to issue sustainable financing instruments, such as sustainable and green bonds, and allocate the net 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 (such as the electrical grid and enablement of high-speed broadband internet).
“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 of the lowest carbon-emitting electricity grids in North America and Hydro One is uniquely positioned to enable the energy transition to achieve the shift to a low-carbon economy,” said Chris Lopez, chief financial officer of Hydro One.
The framework has been reviewed by Sustainalytics, a global leader in providing environmental, social and governance (ESG) research and analysis. 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 company will provide annual updates regarding the use of net proceeds of any green and/or sustainable financing, until the net proceeds of any such financing are fully allocated to eligible projects.
Copies of the Framework and Sustainalytics’ second party opinion are available on the Company’s website at: https://www.HydroOne.com/SustainableFinancing
Featured image credit: Hydro One.