BAKU, Azerbaijan, April 16. Snam has released
an updated Sustainable Financing Framework, introducing a dual
structure to support its goal of sourcing 90% of its financing from
sustainable instruments by 2029, Trend reports.
The framework now consists of two components: Green Financing
and Sustainability-Linked Financing. Each component reflects
different approaches to sustainable finance, aligned with
international best practices.
The Green Financing pillar, independently reviewed by ISS, is
intended to fund projects aligned with the EU Taxonomy, including
the retrofitting of existing gas pipelines. The structure complies
with ICMA’s Green Bond Principles and the EU Green Bond Standard,
with transparency ensured through annual reporting.
The Sustainability-Linked Financing pillar has been assessed by
Moody’s and received an SQS3 “Good” rating. It incorporates
environmental, social, and governance (ESG) targets directly into
financial instruments, linking cost of capital to progress on
climate and social goals. These targets include Snam’s objective to
reach carbon neutrality for Scope 1 and 2 emissions by 2040 and
achieve Net Zero across all scopes by 2050. The framework includes
key performance indicators (KPIs) for emissions and social
metrics.
The updated framework also references Snam’s 2024 Net Zero
Assessment, which provides an external benchmark of the company’s
climate strategy.
According to Nicole Della Vedova, Executive Finance Director at
Snam, the updated framework strengthens the link between financing
and strategic planning, supporting long-term business
resilience.
