Scottish and Southern Electricity Networks (SSEN) Distribution has upgraded its Revolving Credit Facility (RCF) to align it with the company’s Environmental Action Plan and broader sustainability ambitions.
The credit facility was originally launched in November 2022 but has now been upgraded to include three performance indicators aligned with SSEN Distribution’s Sustainability Strategy, with each indicator being assessed annually during the term of the loan.
The credit facility will incorporate the goals of reducing emissions, suppliers setting science-based emission reduction targets, and supporting customers in vulnerable situations.
SSEN Distribution says it is the first UK Distribution Network Operator to set accredited science-based emissions reduction targets for a 35% reduction in Scope 1 and 2 emissions by 2028 and a 55% reduction by 2033.
🌍 We have signed our first-ever sustainability-linked Revolving Credit Facility. This aligns with our commitment to #sustainability and public interest whilst also powering our customers to net zero. 🌿
— Scottish and Southern Electricity Networks (@ssencommunity) July 20, 2023
The sustainability-linked loan facility will also have a social purpose to drive assistance for vulnerable customers, with SSEN saying it represents “the latest example of ongoing efforts to act responsibly.”
SSEN Distribution’s senior consents and environment manager, Michaela Payne, said: “We are proud to take this next step to building a sustainable future for our stakeholders by aligning our business goals and bringing our investors with us on this journey to achieve our environmental, social and governance performance targets.”
SSEN Distribution’s managing director, Chris Burchell, said: “Our five-year RIIO-ED2 business plan reconciles the need for distribution network investment to power communities to net zero, whilst ensuring efficiency and affordability for all as we invest over £3.5 billion over the next five years.
“Securing sustainable finance, such as this revolving credit facility, enables us to retain our clear focus on reliability and customer service whilst we accelerate to net zero and protect those most vulnerable.”
“I would like to extend my thanks to MUFG and everyone involved in progressing our first sustainability-linked RCF and paving the way to powering communities to net zero”
MUFG acted as sole Sustainability Coordinator in the structuring of this RCF loan agreement.
