Hydro One Amends Lines of Credit to Include Diversity, Sustainability-focused Pricing as Part of ESG Commitment.
A Brief Summary
Hydro One has completed the amendment of its syndicated lines of credit agreements to include ESG criteria. The agreements now contain a price adjustment that can raise or lower Hydro One's cost of funding depending on how well it performs on specified Sustainability Performance Measures.
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Hydro One's credit lines will now include a price adjustment based on its performance on specific Sustainability Performance Measures, which will increase or decrease the company's cost of funding.
Hydro One's sustainability initiatives are divided into three categories: "People," with a focus on setting broader diversity and inclusion goals and addressing systemic barriers in the workplace; "Planet," with goals to reduce GHG emissions by 30 per cent by 2030 and achieve net-zero emissions by 2050; and "Community," with a focus on supporting and investing in local communities. The company's goals to achieve at least 30% female executives and board members, convert all light-duty gasoline-powered vehicles to electric vehicles and hybrids by 2030, and increase Indigenous procurement spend to 5% of materials and services purchases by 2026 are among the key performance measures tracked by the sustainability-linked credit lines.
Hydro One is committed to openness in its ESG disclosures and publishes a sustainability report every year. The Global Reporting Initiative (GRI) core sustainability reporting standards, the Sustainability Accounting Standards Board (SASB), and the Taskforce on Climate-related Financial Disclosures govern the Company's reporting (TCFD). On July 28, 2021, Hydro One unveiled its sustainability targets.