Allows Southern Company and its subsidiaries to issue Sustainable Financing Instruments contributing to a sustainable economy
Southern Company has published a Sustainable Financing Framework (“Framework”), making it the first large cap utility holding company in the United States to do so. The Framework, published on January 4, 2021, allows the Southern Company and its subsidiaries to issue sustainable financing instruments and allocate the net proceeds to investments in eligible green and social project categories. These include projects related to renewable energy, energy efficiency, access to essential services (such as education and telecommunications), and employment advancement and development opportunities.
The Framework aligns with Southern Company’s sustainability goals and its transition to a net zero-future. Southern Company was one of the first U.S. utilities to set bold, industry-leading goals to reduce greenhouse gas emissions from its system and has set a goal of net zero emissions by 2050.
Dedicated to being “a citizen wherever we serve,” the Framework also aligns with Southern Company’s social initiatives. Eligible social projects under the Framework include 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 inaugural bond under the Framework, a $400 million green bond, was issued on January 8, 2021 by Southern Power Company (“Southern Power”), a wholly-owned subsidiary of Southern Company.
Following Southern Power’s $400 million green bond offering, the Southern Company system has now issued a combined total of nearly $3.9 billion in green bonds, which ranks within the top five among all U.S. corporate green bond issuers. For more information on the Southern Company system’s previous green bond issuances, please click here.
The Framework is aligned with: The Green Bond Principles, 2018, Social Bond Principles, 2020, Sustainability Bond Guidelines, 2018 and Green Loan Principles, 2018. The Framework, including relevant United Nations Sustainable Development Goals (UN SDG) alignment, can be found here.