Snam published the new ones guidelines for the issue of bonds aimed at making sustainable investments. The aim, reads a note, is to ensure that the financial strategy is consistent with the company's sustainability objectives. And it successfully completed the issue of its first 500 million euro transition bond, which will be used to finance energy transition projects and which, as CEO Marco Alverà said, "acts as a global forerunner"
With the company Strategic Plan 2019-2023, Snam has strengthened its commitment to the energy transition, raising the objective of reducing methane emissions by 25 from 40 to 2025% (with reference to the 2016 values).
As for the criteria for issuing sustainable bonds, Snam has extended the scope to a new category, called "Retrofit of gas transmission network", which includes all activities on the gas network aimed at increasing the integration of hydrogen and other low-carbon gases. The choice is in line with the most recent version of the EU Taxonomy on Sustainable Finance, "Retrofit of Gas Transmission and Distribution Networks".
Snam believes that "the issuance of instruments in Transition Bond format, as well as the Climate Action Bond successfully launched in February 2019 - reads a company note - can help promote the transition towards a low-carbon economy , providing financial support to new or existing projects that go in this direction.
The new criteria have merged into the “Transition Bond Framework”, which provides information on the use and management of Transition Bond funds, the project selection process and reporting.
The document was reviewed by the independent third party Dnv Gl, according to which “the criteria were defined taking into account the most recent version of the EU Taxonomy on sustainable finance. Furthermore, DNV GL concludes that the above categories are in line with Snam's strategy to contribute to the transition to a low-carbon economy and decarbonisation objectives”.
After having "independently evaluated the work carried out by Snam - writes Dnv Gl - we conclude that the company's strategy is consistent with the decarbonisation objectives of Paris".
