Here’s how Eni will finance itself with green
The vademecum for Eni's future loans, from bonds to derivatives, is online. All the details on the first Sustainability Linked Financing Framework
The vademecum for Eni's future loans, from bonds to derivatives, is online.
Eni has in fact published today the first Sustainability Linked Financing Framework (“Framework”) worldwide for its reference sector, which integrates sustainability with the company's financial funding strategy.
Thus Eni further strengthens its sustainability strategy – reads the group's press release – aimed at achieving complete carbon neutrality by 2050, and contributing to the achievement of the United Nations Sustainable Development Goals (“UN SDGs”).
The Framework details the guidelines that Eni will follow in issuing new sustainable financial instruments and will apply to multiple financing solutions, including bond issues (in both public and private formats), bank loans (term loans and credit lines) and hedging derivatives.
Vigeo Eiris (VE), an independent assessment body, has released a Second Party Opinion which certifies the consistency of the Framework with Eni's sustainability strategy, as well as its perfect alignment with the Sustainability-Linked Bond Principles ("SLBP") published by 'International Capital Market Association (ICMA) and the Sustainability-Linked Loan Principles (“SLLP”) published by the Loan Market Association (LMA).
THE 4 KEY INDICATOR
As required by the SLBPs and SLLPs, Eni has identified four Key Performance Indicators ("KPIs") in the Framework: installed capacity for the production of electricity from renewable sources, Net Carbon Footprint Upstream (Scope 1 and 2), Net GHG Lifecycle Emissions (Scope 1, 2 and 3) and Net Carbon Intensity (Scope 1, 2 and 3). All four KPIs have been qualified as relevant and significant by VE
For each of these KPIs, Eni has defined intermediate and long-term Sustainability Performance Targets ("SPTs") that contribute to the achievement of the UN SDGs, in particular the UN SDG 7 "Clean and accessible energy" and the UN SDG 13 "Fight against climate change". These targets are perfectly aligned with Eni's strategic plan and considered ambitious by VE in relation to the sector.
THE TARGETS
Eni will include in future loan agreements, where possible, a mechanism that will link the cost of the loan to the achievement of one or more of the identified targets. To ensure the transparency of the sustainability results achieved by Eni over time, the performance of the various KPIs will be published and verified annually by the auditor appointed for this purpose or by other qualified third parties.
Eni is strongly committed to playing a key role in sustainability and over the last 7 years it has built a business model that puts sustainability at the center of every business activity, including financial strategy, and believes that the development and use of tools sustainability-linked financial statements can help promote the energy transition process towards a low-carbon future.
ENI IS A FOUNDING MEMBER OF "CFO TASKFORCE FOR THE SDGS"
Eni is a founding member of the "CFO Taskforce for the SDGs" set up by the UN Global Compact which, in September last year, published the "CFO Principles on Integrated SDG Investments and Finance" aimed at guiding companies in aligning their commitments sustainability with the financial strategy, in order to create a market for investments and capital in favor of the UN SDGs that is vast, liquid and efficient.
Article published on energiaoltre.it
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/ecco-come-eni-si-finanziera-a-suon-di-green/ on Thu, 20 May 2021 10:53:50 +0000.