Sustainable financing
ACCIONA Energía’s financing strategy aims to provide the most efficient solutions in economic terms, as well as creating a positive impact.
Regarding sustainable financing, taking into consideration market conditions and business strategy at any point in time, the company is using two alternative formats: one in which the use of funds is committed to specific areas or objectives within the sustainable agenda, and the other where determination of the financing cost is linked to ACCIONA Energía's sustainable performance improvements.
Financing the sustainable agenda
This form of financing, whether sourced from capital or banking markets, involves committing to investing the funds raised in projects that contribute directly to achievement of objectives linked to the Sustainable Agenda. These investments are mainly related to the development of renewable energy, access to water and sanitation, infrastructure for sustainable mobility and circular economy, and adaptation to climate change.
ACCIONA Energía puts forward business opportunities that naturally generate interest in the investment market. This growing interest saw the company, in 2019, develop a new green financing framework - reviewed by Sustainalytics - expanding its portfolio of eligible green projects so the company conributes even more to a low carbon economy.
Such financing transactions are performed withing a framework consistent with the European Union Green Bond Standard (EU-GBS), which was introduced by the EU Technical Expert Group (TEG) on Sustainable Finance in June 2019. The EU-GBS is a voluntary standard proposed to issuers who wish to align with best market practices.
It is designed to be globally relevant and accessible to issuers located both inside and outside the EU. It builds on market best practices such as the Green Bond Principles (GBP), published by the International Capital Markets Association (ICMA), and the Green Loan Principles (GLP), administered by the Loan Market Association (LMA).
ACCIONA's Green Financing Framework has been reviewed by Sustainalytics, which issued a Second-Party Opinion confirming the alignment of the Framework with the Green Bond and Green Loan Principles.
In October 2021, Sustainalytics reviewed renewable energy activities under the Framework for their alignment with the EU Taxonomy Climate Delegated Act, published in June 2021. This assessment speaks only to assets and projects of Acciona Energía, and should be read in conjunction with the company’s Green Financing Framework, as well as Sustainalytics’ Second-Party Opinion.
| Green transactions | Amount (million) | Maturity |
|---|---|---|
EMTN | ||
XS2388941077 due October 2027 | EUR 500 | October-27 |
XS2436160183 due January 2032 | EUR 500 | January-32 |
Other transactions | ||
USPP (E1000* AA1) due April 2037 | USD 200 | April-37 |
ECA MacIntyre Loan | AUD 1,098 | December-38 |
Syndicated AUD | AUD 400 | December-25 |
ACCIONA Energía will report annually on the projects to which the financing instruments for the sustainable agenda received are assigned. In compliance with the corporate green financing framework, the company will request an independent review of the impact indicators of these projects. The instruments, projects and associated indicators, as well as the independent assurance report, will be published in ACCIONA Energía’s corporate website.
FINANCING FOCUSED ON IMPROVING ESG PERFORMANCE
This type of financing incorporates, in its economic terms and conditions, objectives for ACCIONA Energía to improve its sustainable performance in the environmental, social, and governance (ESG) areas. Fulfilment of these objectives is periodically evaluated by international rating agencies or, in the case of specific indicators, by independent auditors.
To this end, ACCIONA ENERGÍA has a Sustainability-Linked Financing Framework, reviewed by DNV GL, which issued a second-party opinion (SPO) confirming its alignment with the Sustainability-Linked Bond Principles published by the International Capital Markets Association (ICMA) and the Sustainability-Linked Loan Principles administered by the Loan Market Association (LMA).
The Sustainability-Linked Financing Framework has been structured on the basis of an innovative "double impact" ESG scheme that links the cost of financing to the achievement of corporate sustainability objectives and - for the first time - to commitments that will generate positive local impacts.
| ESG Transactions | Amount (millions) | Maturity |
|---|---|---|
Syndicated ESG Loan EUR 2,500 M ACCIONA Energía | EUR 1,250 | May-26 |
Club Deal (Revolving Credit Facility) | EUR 450 | November-25 |
European taxonomy of environmentally sustainable economic activities
The active involvement of financial markets in financing the sustainable economy is indispensable for the European Union’s plans to move towards a low-carbon economy.
The EU taxonomy Regulation (EU Regulation 2020/852), which came into force on 12 July 2020, helps to create the world’s first ‘green list’, a classification system for sustainable economic activities, which will develop a common language for investors and companies when it comes to financing projects or goods and services with a substantial positive impact on the climate and the environment.
The proportion of eligible economic activities according to the taxonomy in ACCIONA Energía in 2021 was:
- Turnover: 69.09% eligible.
- OpEx: 96.80% eligible.
- CapEx: 100% eligible.
The company’s activities identified as eligible under the appendices on mitigation and adaptation were the electricity generation by means of solar photovoltaic, concentration solar, wind, hydroelectric and bioenergy technologies. It also includes installation, maintenance and repair of stations to charge electric vehicles in buildings and professional services related to energy efficiency in buildings.
Although reporting the alignment of ACCIONA Energía’s activities with the taxonomy is not obligatory in 2022, the company has carried out and submitted to verification this analysis, with the following results:
- Turnover: 99.53% alignment.
- OpEx: 99.50% alignment.
- CapEx: 100% alignment.
In 2021, ACCIONA Energía has undertaken the Sustainable Finance Report 2021, to improve investors’ understanding of the impact of its financing activities. With this report, ACCIONA Energía fulfills its commitment, stated in its Green Finance Framework and Sustainability-Linked Financing Framework to report on the allocation of net proceeds, associated impacts, and compliance with established SPTs, annually.
ESG Evaluation
ACCIONA Energía awarded top ESG score in power sector by S&P
ACCIONA Energía has received the global power industry’s top environmental, social and governance (ESG) score in a cross-sector evaluation by S&P Global Ratings. ACCIONA Energía, with its exclusive focus on renewable energy, scored 86 out of 100 points in its ESG evaluation, making it an industry leader as well as the fifth-ranked company across all sectors worldwide.
S&P Global Ratings’ ESG evaluation is a comprehensive assessment of a company’s preparedness to meet future risks and opportunities linked to ESG factors, such as climate change, regulatory risk and reputational issues. ACCIONA Energía’s top ESG score in the power industry reflects its position as the largest 100% clean energy company in the world, with a successful track record in innovations and research collaborations in green technologies that position the company at the forefront of the low-carbon transition.