Sustainable financing

For A2A, Sustainable Finance is an important lever to achieve the two pillars of the Group's strategy: energy transition and circular economy

Since 2019, the Group has maintained a constant commitment to the development of sustainable finance instruments, also setting itself challenging goals, confirmed with the update of the November 2024 Plan, of reaching over 90% by 2030 and 100% by 2035 of the share of sustainable debt out of total gross debt.

Thanks to the actions carried out over the last few years, A2A's share of sustainable debt has reached 77% as of September 30, 2024.

As of September 30, 2024, A2A’s ESG debt consists of: Green Bonds (58%), Sustainability-linked Bonds (22%) and Green Loans (20%).

 

  • Framework
  • Factsheet
  • Green Bonds
  • Allocation Reporting
  • Sustainability-linked Bonds

Framework

Following its first Green Financing Framework published in July 2019, A2A has structured a new Sustainable Financing Framework in May 2021, that combines the two approaches: Green/Use of Proceeds and Sustainability-Linked. A set of Key Performance Indicators (KPIs) has been selected in order to fully reflect the two pillars of A2A’s strategic plan, namely Energy Transition and Circular Economy (Scope 1 CO2 Emission Intensity; Renewable Energy Capacity Installation; Waste Treated in Group’s Material Recovery Plants). 

The Framework was then updated in February 2022.

Finally, in July 2024 A2A has published its new Sustainable Finance Framework.
The main changes compared to the 2022 version of the Framework are:

-    Green Section:

  • Introduction of additional Green Projects, including, for instance, installation of electric heat pumps and infrastructure for hazardous waste treatment;
  • Alignment of some Green Projects and mapping to the EU Taxonomy;


-    Sustainability-linked Section:

  • Update of the definition of KPI #1 Scope 1 GHG Emission Intensity to include Scope 2;  
  • Replacement of KPI #3, Waste Treated in the Group's Material Recovery Plants with a new KPI: Installed Capacity of the Electric Grid with SPTs by 2030 and 2035 to reflect the Group’s renewed strategy more focused on the network infrastructure in support of the electrification;
  • Update of SPTs in line with the new Strategic Plan.

 

The Sustainable Finance Framework has been prepared in accordance with the relevant guidelines and regulations, including the latest versions of the Green Bond Principles and the Sustainability-Linked Bond Principles administered by the International Capital Market Association (ICMA), as well as the Green Loan Principles and the Sustainability-Linked Loan Principles administered by the Loan Market Association (LMA).

Moreover, A2A commits to provide in each allocation report the share of net proceeds that have been allocated to projects fully aligned with the EU Taxonomy regulation (including the technical screening criteria for substantial contribution, the “Do No Significant Harm” (DNSH) criteria and the minimum social safeguards (MSS).

S&P has issued a Second Party Opinion (SPO) confirming the soundness of the Sustainable Finance Framework and attesting its alignment with the ICMA and LMA principles. For the Use-of-Proceeds section, the agency has also assigned a "Medium Green" shading (on a scale from "Red" to "Dark Green").

Factsheet

On November 22, 2023, the European Parliament and the Council adopted Regulation (EU) 2023/2631 on European Green Bonds and voluntary disclosure for bonds marketed as environmentally sustainable and Sustainability-linked Bonds.

The new Regulation (EU) 2023/2631 establishes the criteria that green bonds must meet to obtain the “European Green Bond” label and is applicable as of December 21, 2024. This EU Green Bond standard is considered the “gold standard” for green bonds in terms of proceeds allocation, reporting, and external review requirements, enabling greater transparency and investor trust, reducing the risk of greenwashing, and positioning A2A as a reliable partner.

Article 10 of the Regulation states that prior to the issuance of a European Green Bond, the issuer must i) complete an ad hoc factsheet according to the structure set out in Annex I of the Regulation and ii) submit this factsheet for external review by a third party (registered with a specific ESMA register) to obtain a favourable opinion.

A factsheet may concern a single issuance or more than one.

On the occasion of the issuance of its inaugural European Green Bond in January 2025, A2A has published its first Factsheet, concerning the single issuance.
At the same time, A2A has published the pre-issuance review report issued by Sustainable Fitch. Fitch has expressed a positive opinion on the Factsheet, confirming the alignment with Regulation (EU) 2023/2631 for the transaction and with Regulation (EU) 2020/852 for the use of proceeds, which are considered fully aligned with the EU Taxonomy. Subsequently, in February 2025, Sustainable Fitch released the updated external review report, also confirming the alignment of the transaction with the ICMA Green Bond Principles.

As stated in the Factsheet, the net proceeds from the issuance of the European Green Bond will be used to finance or refinance projects that are 100% aligned with the European Taxonomy, central to implementing A2A's Strategic Plan in the areas of energy transition and circular economy, including the development of electrical grids and renewable energy sources, energy efficiency, and waste collection.

Green Bonds

Currently the A2A Group has seven following Green Bonds outstanding for a total amount of €3.9 billion

Here below, we include the table with the key data related to the Bonds, along with the Investor Presentations that provide information on the ESG aspects of the transactions.

Bond ISIN Outstanding Amount, €M Issue Date Maturity Date ESG Component
Euro European Green Bond 2035 XS2986639701 500 30/01/2025 30/01/2035 100% alignment to EU Taxonomy and in accordance with Regulation (EU) 2023/2631 (the EU GB standard)
Euro Green Hybrid Bond XS2830327446 750 11/06/2024 Perpetual 100% eligibility to EU Taxonomy and alignment on best effort basis
Euro Green Bond 2034 XS2583205906 500 03/02/2023 03/02/2034 100% eligibility to EU Taxonomy and alignment on best effort basis
Euro Green Bond 2030 XS2534976886 650 19/09/2022 19/09/2030 100% alignment to EU Taxonomy
Euro Green Bond 2026 XS2491189408 600 08/06/2022 08/06/2026 100% alignment to EU Taxonomy
Euro Green Bond 2033 XS2403533263 500 02/11/2021 02/11/2033 100% alignment to EU Taxonomy
Euro Green Bond 2029 XS2026150313 400 16/07/2019 16/07/2029 Eligible Green Projects based on Green Financing Framework
Total   3900      

Allocation Reporting

To date, A2A has published four Green Bond Allocation & Impact Reports. Furthermore, a document has been prepared in Excel format which summarizes the Allocation Reporting published to date.

Sustainability-linked Bonds

Currently the A2A Group has two following Sustainability-linked Bonds outstanding for a total amount of €1 billion

Bond ISIN Outstanding Amount, €M Issue Date Maturity Date ESG Component
Euro Bond 2028 – SLB XS2457496359 500 16/03/2022 16/03/2028 KPI «Renewable Energy Capacity Installation» in 2024
Euro Bond 2031 – SLB XS2364001078 500 15/07/2021 15/07/2031 KPI «CO2 Scope 1 Emission Intensity» in 2025
Total   1000