Investors News Release
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NRG Energy Becomes First North American Company to Issue Sustainability-Linked Bond
--Proceeds to be Used for Direct Energy Acquisition and to Support the Advancement of the Company’s Customer-Centric Strategy--
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As a complement to the sustainability-linked pricing metric added to the Company’s corporate credit agreement in 2019, the Company’s issuance of the SLB aligns NRG’s business and financing with company commitments and values by creating a direct link between climate and funding strategies. The SLB links attractive financing to the realization of the Company’s previously announced goals to achieve a 50% reduction of absolute greenhouse gas (GHG) emissions by 2025, and reach net-zero GHG emissions by 2050, from the current 2014 baseline.
“For over a decade, we have considered our comprehensive sustainability framework foundational to our company strategy,” said
“We’re proud to lead the way with this innovative Sustainability Linked Bond, which ties our financing to the achievement of our sustainability objectives,” said
The Company’s SLB will be measured in accordance with one key performance indicator (KPI) and an associated Sustainability Performance Target (SPT), which support United Nations Sustainable Development Goals (SDG) 7 – Affordable and Clean Energy and 13 – Climate Action. The SPT set by NRG is absolute GHG emissions of 31.7 million metric tons of carbon dioxide equivalent by the end of 2025.
Reaching this goal is equivalent to removing over 6.8 million passenger vehicles from the road for a year. Measurement of the KPI will cover emissions from the production of wholesale electric power at facilities owned or controlled by the Company (Scope 1), emissions generated from the electricity purchased and consumed by the Company (Scope 2), and emissions encompassed by employee business travel (Scope 3).
Further, NRG has obtained a separate second-party opinion (SPO) from Vigeo Eiris on the robustness and relevance of the KPI and SPT. Vigeo Eiris is a global leader in environmental, social, and governance (ESG) assessments, data, research, benchmarks and analytics, and is a Climate Bonds Initiative Verified Provider of Second Party Opinions.
NRG was also advised by Natixis, which acted as sole sustainability-linked bond structurer and coordinator. Natixis is a leader in providing innovative financial products and solutions to support companies’ transitions to a more sustainable business model, providing invaluable expertise and guidance as an active structurer and coordinator.
The Company’s GHG emissions will continue to be reported on an annual basis through NRG’s Sustainability Report and in a separate third-party assurance report from its auditor.
For full details see investors.nrg.com/fixed-income.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identified by the use of words such as “expect,” “estimate,” “should,” “anticipate,” “forecast,” “plan,” “guidance,” “outlook,” “believe” and similar terms. Although NRG believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the
At NRG, we’re bringing the power of energy to people and organizations by putting customers at the center of everything we do. We generate electricity and provide energy solutions and natural gas to more than 3.7 million residential, small business, and commercial and industrial customers through our diverse portfolio of retail brands. A Fortune 500 company, operating in