Snam publishes new Sustainable Finance Framework
The selected KPIs are linked to ESG targets that actively contribute to the achievement of UN SDGs number 5 and 13
Following its 2023-2027 Strategic Plan published in January 2024 Snam has structured a new Sustainable Financing Framework, aimed at achieving the sustainable finance target of 85% by 2027, the Company said in its news release.
The Sustainable Finance Framework, that fits into Snam's new sustainability strategy which adopts an all-round, fully integrated approach within the Group's operations and corporate strategy, will follow best market practices as established by the International Capital Market Association (ICMA), by the Loan Market Association (LMA) and by the Climate Transition Finance Handbook.
Under this Framework, updated with the support of Barclays and BNP Paribas, acting as ESG Structuring Coordinators, Snam will be able to issue Green and Sustainability-Linked debt instruments in the form of bonds, loans, project financings and/or any other financing instruments in various formats and currencies.
Regarding the Use of Proceeds component, green financing marks a further evolution, moving beyond the previous EU Taxonomy aligned transition format by increasing the focus on low-carbon gases infrastructure and including additional project categories (such as Carbon Capture Storage – CCS, among others) which are all selected in full compliance with the EU Taxonomy criteria, as verified by the Second Party Opinion (SPO) supporting this Framework.
Regarding the Sustainability-Linked component, a set of Key Performance Indicators (KPIs) has been selected in order to fully reflect the key pillars of Snam’s ESG Strategy.
The selected KPIs (CH4 emission reduction, Scope 1 and 2 emission reduction, Scope 3 emission reduction, Diversity in Management Roles) are linked to ESG targets that actively contribute to the achievement of UN SDGs number 5 and 13.
On emissions reduction, Snam’s commitment remains firm in spite of current challenging scenario characterized by higher activity and related emissions intensity. Regarding methane emissions, in 2023, Snam achieved a decrease of 55% in methane emissions compared with 2015 and set a target reduction of 64.5% by 2027, improving the targets recommended by the United Nations Environment Programme (UNEP), and once again receiving the Gold Standard.
Regarding emissions for Scope 1 and 2 emissions the Company aims to achieve Carbon Neutrality by 2040. To these objectives, a new long-term commitment is added: achieving Net Zero across all emissions (including Scope 3) by 2050.
All the targets are aligned with the SBTi’s general methodology.