Since 2019, the Group has maintained a constant commitment to the development of sustainable finance instruments, also setting itself challenging goals, confirmed with the update of the November 2024 Plan, of reaching over 90% by 2030 and 100% by 2035 of the share of sustainable debt out of total gross debt.
Thanks to the actions carried out over the last few years, A2A's share of sustainable debt has reached 77% as of September 30, 2024.
As of September 30, 2024, A2A’s ESG debt consists of: Green Bonds (58%), Sustainability-linked Bonds (22%) and Green Loans (20%).
Following its first Green Financing Framework published in July 2019, A2A has structured a new Sustainable Financing Framework in May 2021, that combines the two approaches: Green/Use of Proceeds and Sustainability-Linked. A set of Key Performance Indicators (KPIs) has been selected in order to fully reflect the two pillars of A2A’s strategic plan, namely Energy Transition and Circular Economy (Scope 1 CO2 Emission Intensity; Renewable Energy Capacity Installation; Waste Treated in Group’s Material Recovery Plants).
The Framework was then updated in February 2022.
Finally, in July 2024 A2A has published its new Sustainable Finance Framework.
The main changes compared to the 2022 version of the Framework are:
- Green Section:
- Sustainability-linked Section:
The Sustainable Finance Framework has been prepared in accordance with the relevant guidelines and regulations, including the latest versions of the Green Bond Principles and the Sustainability-Linked Bond Principles administered by the International Capital Market Association (ICMA), as well as the Green Loan Principles and the Sustainability-Linked Loan Principles administered by the Loan Market Association (LMA).
Moreover, A2A commits to provide in each allocation report the share of net proceeds that have been allocated to projects fully aligned with the EU Taxonomy regulation (including the technical screening criteria for substantial contribution, the “Do No Significant Harm” (DNSH) criteria and the minimum social safeguards (MSS).
S&P has issued a Second Party Opinion (SPO) confirming the soundness of the Sustainable Finance Framework and attesting its alignment with the ICMA and LMA principles. For the Use-of-Proceeds section, the agency has also assigned a "Medium Green" shading (on a scale from "Red" to "Dark Green").
On November 22, 2023, the European Parliament and the Council adopted Regulation (EU) 2023/2631 on European Green Bonds and voluntary disclosure for bonds marketed as environmentally sustainable and Sustainability-linked Bonds.
The new Regulation (EU) 2023/2631 establishes the criteria that green bonds must meet to obtain the “European Green Bond” label and is applicable as of December 21, 2024. This EU Green Bond standard is considered the “gold standard” for green bonds in terms of proceeds allocation, reporting, and external review requirements, enabling greater transparency and investor trust, reducing the risk of greenwashing, and positioning A2A as a reliable partner.
Article 10 of the Regulation states that prior to the issuance of a European Green Bond, the issuer must i) complete an ad hoc factsheet according to the structure set out in Annex I of the Regulation and ii) submit this factsheet for external review by a third party (registered with a specific ESMA register) to obtain a favourable opinion.
A factsheet may concern a single issuance or more than one.
On the occasion of the issuance of its inaugural European Green Bond in January 2025, A2A has published its first Factsheet, concerning the single issuance.
At the same time, A2A has published the pre-issuance review report issued by Sustainable Fitch. Fitch has expressed a positive opinion on the Factsheet, confirming the alignment with Regulation (EU) 2023/2631 for the transaction and with Regulation (EU) 2020/852 for the use of proceeds, which are considered fully aligned with the EU Taxonomy.
As stated in the Factsheet, the net proceeds from the issuance of the European Green Bond will be used to finance or refinance projects that are 100% aligned with the European Taxonomy, central to implementing A2A's Strategic Plan in the areas of energy transition and circular economy, including the development of electrical grids and renewable energy sources, energy efficiency, and waste collection.
Here below, we include the table with the key data related to the Bonds, along with the Investor Presentations that provide information on the ESG aspects of the transactions.
| Bond | ISIN | Outstanding Amount, €M | Issue Date | Maturity Date | ESG Component |
|---|---|---|---|---|---|
| Euro European Green Bond 2035 | XS2986639701 | 500 | 30/01/2025 | 30/01/2035 | 100% alignment to EU Taxonomy and in accordance with Regulation (EU) 2023/2631 (the EU GB standard) |
| Euro Green Hybrid Bond | XS2830327446 | 750 | 11/06/2024 | Perpetual | 100% eligibility to EU Taxonomy and alignment on best effort basis |
| Euro Green Bond 2034 | XS2583205906 | 500 | 03/02/2023 | 03/02/2034 | 100% eligibility to EU Taxonomy and alignment on best effort basis |
| Euro Green Bond 2030 | XS2534976886 | 650 | 19/09/2022 | 19/09/2030 | 100% alignment to EU Taxonomy |
| Euro Green Bond 2026 | XS2491189408 | 600 | 08/06/2022 | 08/06/2026 | 100% alignment to EU Taxonomy |
| Euro Green Bond 2033 | XS2403533263 | 500 | 02/11/2021 | 02/11/2033 | 100% alignment to EU Taxonomy |
| Euro Green Bond 2029 | XS2026150313 | 400 | 16/07/2019 | 16/07/2029 | Eligible Green Projects based on Green Financing Framework |
| Total | 3900 |
| Bond | ISIN | Outstanding Amount, €M | Issue Date | Maturity Date | ESG Component |
|---|---|---|---|---|---|
| Euro Bond 2028 – SLB | XS2457496359 | 500 | 16/03/2022 | 16/03/2028 | KPI «Renewable Energy Capacity Installation» in 2024 |
| Euro Bond 2031 – SLB | XS2364001078 | 500 | 15/07/2021 | 15/07/2031 | KPI «CO2 Scope 1 Emission Intensity» in 2025 |
| Total | 1000 |
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