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.