Ontario, Canada electric utility Hydro One announced that it has incorporated ESG considerations into its financing costs, with agreements to amend its lines of credit with the addition of sustainability-linked pricing.
Under the new agreements, Hydro One’s credit lines now include a pricing adjustment, increasing or decreasing the company’s cost of funding based on its performance on certain Sustainability Performance Measures.
Hydro One’s sustainability initiatives encompass the categories of “People,” with priorities to set broader diversity and inclusion goals and address systemic barriers in the workplace, “Planet,” including targets to achieve 30% GHG emissions reductions by 2030 and achieve net zero emissions by 2050, and “Community,” aiming to support and invest in local communities. The key performance measures tracked by the sustainability-linked credit lines include 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.
According to the company, the agreements establish Hydro One as the first company in Canada to incorporate a Sustainability Performance Measure that is based on increasing Indigenous procurement spend.
Mark Poweska, President and CEO, Hydro One, said:
“Integrating our financing strategy with our ESG goals shows our strong commitment to standing up for people, the planet and communities across Ontario. We are especially proud to be the first organization in Canada to incorporate a Sustainability Performance Measure that is based on increasing Indigenous procurement spend. We understand that our long-term performance depends on incorporating sustainability into all aspects of our business and we are committed to becoming an industry leader in ESG.”