SSEN Transmission signs debut £750m sustainability-linked facility25 May 2023
SSEN Transmission has signed its first ever sustainability-linked Revolving Credit Facility (RCF), further reinforcing the company’s commitment to sustainability in line with its Sustainability Action Plan.
The facility has been upgraded to include four key performance indicators, which have been designed to align with SSEN Transmission’s commitment to sustainability, and each indicator will be assessed annually during the term of the loan, thus bringing greater alignment between SSEN Transmission’s sustainability and financing strategies.
The ESG KPIs relate to the following areas:
- Reduction in Scope 1 & 2 emissions;
- Suppliers setting science-based emission reduction targets;
- Capex spend on connecting renewables and;
- Biodiversity net gain delivery commitments across major terrestrial projects
The north of Scotland’s electricity transmission network has a major role to play in supporting the delivery of Scotland and the UK’s 2030 climate change targets.
SSEN Transmission has ambitious plans to invest more than £10bn in its network in the decade to 2030, to enable the delivery of more renewable energy to the GB grid.
The company has shown long-term commitment to sustainable initiatives and securing this sustainability-linked loan is the latest example of ongoing efforts to act responsibly.
In 2019, SSEN Transmission was the UK’s first electricity networks company to have their GHG emissions target externally validated by the Science Based Targets Initiative (SBTi), in line with a 1.5°C global warming pathway.
Since then, we have been recognised as an industry leader on our biodiversity commitments, as the first developer to consult upon and implement Biodiversity Net Gain on all new projects by full-year 2025/26, committing no net loss in the lead up to this date.
"Securing this sustainability-linked loan is a big step for SSEN Transmission as we aim to develop the network in the north of Scotland in a way that safeguards the environment and ultimately helps towards delivering net zero and climate change targets."Rob McDonald, Managing Director, SSEN Transmission
“It’s important that we work to secure funding in a sustainable way, and revolving credit facilities, like the one brokered by MUFG allow us to do that.
“Our network in the north of Scotland is growing at pace and green finance like this helps to enable that growth. At SSEN Transmission, we’ll be investing over £10bn in the decade to 2030 and green financing options like this one will have a big role to play in making that happen.”
MUFG acted as sole Sustainability Coordinator in the structuring of this RCF agreement.
Phil Roberts, Head of Global Corporate & Investment Banking Division for Europe, Middle East and Africa, MUFG said:
“It was a pleasure for MUFG to work with SSE on an inaugural sustainability-linked facility for Transmission. The SSEN Transmission team’s drive and commitment to the transition to net zero was clear to see, as evidenced by the ambitious nature of the RCF’s four ESG KPIs that were in turn strongly supported by the group of banks associated with this facility.”