Hydro One Limited announces changes to lines of credit to add sustainability-related pricing as part of its commitment to ESG
It is the first organization in Canada incorporate sustainability performance measurement based on increased Indigenous procurement spending
TORONTO, January 17, 2022 /PRNewswire/ – Hydro One has successfully entered into agreements to amend its syndicated lines of credit to incorporate ESG objectives. The agreements now include a price adjustment that can increase or decrease Hydro One’s cost of financing based on its performance against certain sustainability performance measures. These actions are linked to Hydro One’s sustainability goals in the following priority areas:
- Community: increase Indigenous procurement spending to 5% of Hydro One materials and services purchases by 2026
- Planet: convert all light-duty gasoline vehicles (sedans and SUVs) to electric and hybrid vehicles by 2030
- People: reach at least 30% women executives and members of the board of directors
“Integrating our fundraising strategy with our ESG objectives shows our strong commitment to championing people, planet and communities through Ontario. We are particularly proud to be the first organization in Canada Incorporate sustainability performance measurement based on increased Aboriginal procurement spending. We understand that our long-term performance depends on embedding sustainability into all aspects of our business and we are committed to becoming an industry leader in ESG,” said Marc Poweska, President and CEO, Hydro One.
CIBC and RBC acted as co-sustainability structuring agents for the Hydro One Limited and Hydro One Inc. lines of credit.
“CIBC is proud to partner with Hydro One as co-sustainability structuring agent to transform its lines of credit into sustainability-linked loans, and we commend Hydro One for its leadership focus on sustainability. sourcing and its commitment to environmental, social and corporate issues. governance,” said Eric Métivier, Head, Corporate Services – Canada at CIBC Capital Markets. “With our strong leadership position in the Canadian market, this partnership with Hydro One is one of the ways we are helping to foster a more sustainable and inclusive economy.”
“RBC is proud to partner with Hydro One as co-sustainability structuring agent on these lines of credit, establishing a pricing structure tied to meaningful and ambitious sustainability performance targets that are aligned with Hydro One’s strategic priorities,” said Patti Shugart, Head of Corporate Banking at RBC Capital Markets. “RBC’s approach to sustainability and our focus on providing our clients with the best advice tailored to their needs is essential to our stated goal of helping clients prosper and communities prosper.
Hydro One is committed to transparency in its ESG disclosures and publishes an annual sustainability report. The company is guided in its reporting by the Global Reporting Initiative (GRI) Core Sustainability Reporting Standards, the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD) . Hydro One announced its sustainability goals on July 28, 2021. See Hydro One’s 2020 Sustainability Report for more information: https://www.hydroone.com/Sustainability
Hydro One Limited (TSX: H)
Hydro One Limited, through its wholly owned subsidiaries, is from Ontario largest electricity transmission and distribution provider with approximately 1.4 million rated customers, approximately 30.3 billion Canadian dollars of assets at December 31, 2020, and annual revenues in 2020 of approximately 7.3 billion Canadian dollars. Our team of approximately 8,700 skilled and dedicated employees takes pride in building and maintaining a safe and reliable power system that is essential to supporting strong and thriving communities. In 2020, Hydro One invested approximately 1.9 billion Canadian dollars in its transmission and distribution networks, and supported the economy by purchasing approximately 1.7 billion Canadian dollars of goods and services. We are committed to the communities where we live and work through community investment, sustainability and diversity initiatives. We are designated as a sustainable electricity company by the Canadian Electricity Association. The common shares of Hydro One Limited are listed on the TSX and certain of Hydro One Inc.’s medium term notes are listed on the NYSE. Additional information is available at www.HydroOne.com, www.sedar.com Where www.sec.gov.
Forward-Looking Statements and Information
This press release contains “forward-looking information” within the meaning of applicable securities laws. Words such as “expect”, “anticipate”, “intend”, “attempt”, “may”, “plan”, “will”, “may”, “believe”, “seek” , “estimate” and variations of these similar words and expressions are intended to identify such forward-looking information. Forward-looking information in this press release includes statements regarding our sustainability goals. These statements are not guarantees of future performance or actions and involve assumptions, risks and uncertainties that are difficult to predict. Accordingly, actual results may differ materially from what is expressed, implied or anticipated in such forward-looking information. Certain of the factors that could cause actual results to differ materially from those expressed, implied or projected by such forward-looking information, including certain of the assumptions used in making such statements, are discussed in greater detail in Hydro’s filings. One with the securities regulators of Canada, which are available on SEDAR at www.sedar.com. Hydro One does not intend, and disclaims any obligation, to update any forward-looking information except as required by law.
SOURCE Hydro One Limited