A new sustainability framework launched by Enbridge will strengthen its business and its ESG agenda; the company announced this Thursday, as it published the first Sustainability-Linked Bond Framework for the North American midstream sector.
Firstly, the framework pretends to merge together the company’s ESG agenda, while strengthening its business through funding strategies. On the one hand, with the framework, Enbridge will strengthen its commitment to achieving net-zero GHG emissions by 2050.
On the other hand, the company will be more attractive to investment from public and private entities, looking for robust and environmentally oriented business models. In addition, after the sustainability framework, the company will increase its diversity from racial and ethnic groups; including senior management and the board of directors.
Secondly, the Framework lays out the principles Enbridge would use in connection with an issuance of sustainability-linked bonds; and includes performance indicators that impact the Company’s borrowing costs.
Such bond will also create a direct link between the Company’s finance strategies and its ESG goals incenting their achievement.
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Enbridge looks on how it managed sustainability during the challenging 2020
Thirdly, to ensure the transparency and the performance of such sustainability indicators, the company will publish and verify annually its ESG goals and the strategies launched to fulfill them.
Moreover, the performance indicators that will be measured include the Company’s progress on reducing by 35% the intensity of its scope 1 and 2 GHG emissions by 2030; as well as its progress on achieving 28% representation of racial and ethnic groups in its workforce; also, 40% gender diversity across the organization; and 40% representation of women on its board of directors by 2025.
In addition to the sustainability framework, the company published today its 2020 Sustainability Report, which highlights how the Company is advancing a long-standing approach to sustainability. This year’s report focuses on the company’s investments in renewable natural gas; also, hydrogen and renewable electricity.
Finally, Pete Sheffield, Enbridge’s Chief Sustainability Officer, said. “In our 2020 Sustainability Report; we look back on our ESG performance during a uniquely challenging year for all of our stakeholders. We also look forward, building on our new ESG goals; and including new metrics to track the emissions intensity of the energy we deliver; and aligning our financing with our climate goals.”