SSE unveils new green bond plan to fund growth

SSE plc, the Perth-based electricity infrastructure giant which has raised £2.5 billion in green bonds since 2017 — published on Wednesday an “updated sustainability financing framework” that it said “represents the next step of maturity in SSE’s approach to sustainable financing …”

SSE said its new plan merges its green bond and sustainability-linked bond frameworks with the aim of increasing transparency “through high quality disclosure” for interested stakeholders.

“To achieve this, SSE has aligned the framework to the following key external frameworks and standards …” said the FTSE 100 firm.

“Include all green and sustainability linked financing under one document, therefore aligning the framework to the ICMA’s Green Bond Principles 2021 and Sustainability Linked Bond Principles 2023 and to the Loan Market Association’s Green Loan Principles 2023 and Sustainability Linked Loan Principles 2023 …

“Therefore, the framework applies also to Green Loans, Sustainability-Linked Loans and any other Use of Proceeds or General Corporate Purpose instrument (e.g., hybrid bonds, convertible bonds, commercial paper, derivatives instruments, or other forms of financial instrument available) …

“Alignment of the Use of Proceeds Framework with the Technical Screening Criteria of the EU Taxonomy for sustainable activities – a cornerstone of the EU’s sustainable finance framework and an important market transparency tool …”

SSE finance director Gregor Alexander said: By financing these investments through green bonds and sustainability-linked instruments, we are helping to attract more capital into initiatives that will accelerate progress towards net zero while holding ourselves to account on wider sustainability efforts. 

“This new, enhanced framework underlines our commitment to green finance, while we also remain focused on the important qualities of optionality, agility and discipline for future financing.

“This framework will help us secure the funding required for our Net Zero Acceleration Programme Plus investments, and will enable us to continue to deliver cleaner, more secure and more affordable energy.”