Pacific Gas and Electric Company (PG&E) has recently completed a $750 million sustainability bond issuance in support of its commitment to healing the planet and keeping costs low for its customers.
The net proceeds from the bonds will finance or refinance projects that support PG&E's carbon reduction and sustainability goals.
These bonds were designated as sustainability bonds, which are a type of capital raise that finances investments with intended environmental and social benefits.
PG&E's Sustainable Finance Framework, which was reviewed by S&P Global Ratings, was used to designate the bonds as sustainability bonds. This framework is intended to inform investors how financings support PG&E's sustainability strategy.
Eligible green and social project categories under the framework include climate change adaptation, renewable energy, clean transportation, energy efficiency, pollution prevention and control, and socioeconomic advancement and empowerment.
The Sustainable Finance Framework is intended to contribute to beneficial environmental or social outcomes and align with PG&E's enterprise-wide sustainability strategy of achieving carbon-neutral emissions, maintaining the affordability and safety of its services for customers, and empowering local communities.
"As recent powerful storms have once again made clear, California is on the front line of the climate crisis. These sustainability bonds will help build climate resilience into our electric system to make it safer and enable further carbon reductions as we work to deliver a greater proportion of renewably generated power to our customers while also helping to keep bills affordable," said Carolyn Burke, PG&E Corporation Executive Vice President, Finance.
PG&E's issuance of $750 million in sustainability bonds reflects its commitment to healing the planet and keeping costs low for its customers. These bonds will finance or refinance projects that support PG&E's carbon reduction and sustainability goals, as outlined in its recently published Sustainable Finance Framework.
This framework is intended to inform investors how financings support PG&E's sustainability strategy, which is focused on achieving carbon-neutral emissions, maintaining affordability and safety, and empowering local communities.
What do you think of PG&E's $750 million sustainability bond issuance? Do you think it is an effective way for PG&E to support its carbon reduction and sustainability goals?
Do you believe that sustainability bonds are a valuable way to finance investments with environmental and social benefits?
Share your thoughts and insights in the comments section below.
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