ACCIONA Launches New Green Financing Framework

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by KnowESG,

Acciona SA

KnowESG_Acciona new green financing framework
Image courtesy of Acciona

In a world where technology and innovation constantly shape our lives, ACCIONA and ACCIONA Energía have stepped up to the forefront of sustainable financing with a groundbreaking approach.

They have developed an unparalleled impact financing framework that extends to both debt issues and bank loans, encompassing quantifiable environmental and social objectives that surpass existing sustainable financing models.

This new formula introduces additional initiatives aimed at creating a "positive impact" on the communities where ACCIONA operates, setting a new standard for transparency and credibility.

With markets now demanding heightened transparency in sustainable financing instruments, ACCIONA's framework is a breath of fresh air. It sets forth a clear and rigorous set of rules that reinforce its credibility and commitment to sustainability.

The eligibility criteria for financed assets are based on the European green taxonomy, a classification system established by the European Union (EU) that defines what economic activities can be deemed "sustainable."

These criteria ensure that ACCIONA's financing aligns with environmentally responsible practices. The allocation of assets to various lines of financing is regularly reviewed by ACCIONA's Sustainable Finance Committee, ensuring ongoing compliance.

To measure their corporate impact, ACCIONA and ACCIONA Energía have established ambitious goals, including a 60% reduction of Scope 1 and Scope 2 CO2 emissions from 2017 to 2030.

Moreover, they commit to investing more than 90% (ACCIONA) and 95% (ACCIONA Energía) in line with the EU taxonomy. These targets showcase their dedication to mitigating climate change and promoting sustainable practices.

Adding a unique twist, the framework incorporates quantitative indicators of local impact, emphasising the importance of empowering communities and fostering positive change.

These indicators include metrics such as hours of training and certification for women, vulnerable groups, and minorities, access to affordable and clean electricity services for rural households, reforestation efforts, decarbonisation plans for small and medium-sized enterprises, procurement from low-carbon local suppliers, and decarbonisation plans for farms near wind farms.

The framework is based on best practices from leading sustainable funding principles such as the Green Bond Principles (GBP) of the International Capital Markets Association (ICMA) and the Green Lending Principles (GLP) administered by the Loan Market Association (LMA).

Moreover, it aligns seamlessly with the draft European Union Green Bond Standard (EU-GBS). DNV, an independent certification body, has reviewed and approved the new framework, validating its adherence to these esteemed standards.

ACCIONA and ACCIONA Energía are committed to accountability and transparency. They will provide annual updates through their Sustainable Finance Report, detailing the issuance of green financing instruments and sustainability-linked instruments, the allocation of taxonomy-aligned assets, their related impacts, and compliance with the established local impact indicators.

In their 2022 Sustainable Finance Report, ACCIONA and ACCIONA Energía introduced a new format and content that enhances investors' understanding of the far-reaching impact of their financing activities. Through this transparent, verified, and comprehensive report, the companies showcase their unwavering dedication to sustainability.

By the end of 2022, ACCIONA and ACCIONA Energía successfully channelled €4.05 billion of their corporate debt through sustainable financing instruments, constituting an impressive 60% of their total corporate debt of €6.79 billion. This monumental achievement underlines their position as leaders in the pursuit of a greener and more sustainable future.

In conclusion, ACCIONA's innovative sustainable impact financing framework is not only changing the landscape of sustainable financing but also setting new standards for corporate responsibility. By combining environmental and social objectives with a commitment to transparency, ACCIONA and ACCIONA Energía are ushering in a new era of finance that holds the potential to shape a brighter and more sustainable world for all.

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