Energy provider Southern Company announced today the publication of a sustainable financing framework, enabling it to issue sustainable financing instruments and allocate the net proceeds to investments in eligible green and social project categories. According to the company, the framework is the first of its kind to be published by a large cap utility holding company in the United States. The company also announced that its subsidiary Southern Power Company has issued a $400 million green bond under the new framework.
The new framework covers the issuance of instruments by Southern Company and its subsidiaries, including Green Bonds, Social Bonds, Sustainability Bonds, loans or other financial instruments. Eligible allocation categories from associated proceeds include renewable energy, climate change adaptation, energy efficiency, clean transportation, green buildings, and green innovation. The framework also includes eligible social projects such as the procurement of products and services from diverse suppliers, education assistance for minority populations, as well as economic advancement and development opportunities for underserved employees, communities and students.
The company stated that the new sustainable financing framework is aligned with The Green Bond Principles, 2018, Social Bond Principles, 2020, Sustainability Bond Guidelines, 2018 and Green Loan Principles, 2018.