Australian energy infrastructure company Jemena has moved to satisfy investor demand for more sustainable investment options with the release of its Green Finance Framework.
The framework, developed in collaboration with global investment banks HSBC and ING, is believed to be the first of its kind to be delivered by a traditional energy company operating in Australia.
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The Green Finance Framework follows Jemena announcing its ambition to achieve net-zero emissions by 2050 and will see the business use funds raised from green instruments such as bonds, loans, and promissory notes to finance and/or refinance projects which will have a positive impact on the environment. The framework applies to companies within the State Grid Singapore Power Australia Assets (SGSP Australia Assets) Group (the group) including Jemena and engineering, project management, operations and maintenance services company, Zinfra.
Jemena chief financial officer David Gillespie said the framework reflected the group’s contribution to the United Nations Sustainable Development Goals, particularly goal seven (affordable and clean energy) and goal 13 (climate action).
“This is a natural evolution of our group’s sustainability strategy, which focuses on supporting the development of new technologies as part of the energy transition,” Mr Gillespie said.
“Our Green Finance Framework gives confidence to investors that they are backing projects which will make a difference in lowering carbon emissions, while also helping to create the energy system of the future.”
Mr Gillespie said Jemena, along with its project partners, was leading a number of innovative trials designed to test the application of new technologies in commercial, residential, and transport settings.
“Together with the Australian Renewable Energy Agency (ARENA) and our other project partners we’re investing close to $30 million in renewable gas trials which are testing how hydrogen and biomethane can be integrated into the New South Wales gas distribution network. Across our electricity network in Victoria, we are also leading work to enhance the integration of renewables into the electricity grid, while giving people greater choice and control over how they power their lives.”
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Net proceeds of green instruments issued by Jemena will be used to fund projects in four major categories: renewable energy, energy efficiency, clean transport, and climate adaptation.
Administration of the framework will be subject to external review, and will be reported on annually as part of the group’s annual reporting process.
