Ontario Power Generation (OPG) in Canada has released its Sustainable Finance Framework, which will permit funding of a broader range of clean energy technologies and initiatives to create opportunities for Indigenous communities and businesses.
This replaces OPG’s Green Bond Framework, which introduced funding for the refurbishment and maintenance of existing nuclear facilities.
The new framework provides opportunities to facilitate Indigenous communities and businesses participating in OPG’s projects and initiatives through procurement, training, education and employment. Introducing social categories focused on Indigenous Reconciliation will enable established bond investors and OPG to further commitments to engage and work with Indigenous communities, businesses and organizations to advance reconciliation.
In addition, under the framework, net proceeds from OPG’s sustainable bond issuance may now finance a broader array of projects and programs, including:
- New nuclear projects, such as small modular reactors and large new nuclear, in addition to maintenance or refurbishment of facilities
- Renewable energy projects like hydro refurbishment, solar, wind and hydrogen production
- Energy efficiency and management solutions such as energy storage and clean fuel storage
- Clean transportation initiatives such as zero-emissions vehicles, and
- Developing climate adaptation and resilience capabilities for flood protection and extreme weather.
“As Canada’s largest corporate green bond issuer, expanding our eligible use of proceeds from these bonds recognizes growing demand for clean electricity and OPG’s commitment to advancing economic Reconciliation with Indigenous Nations and communities,” said Aida Cipolla, OPG’s chief financial officer and corporate services officer. “Partnerships will be key to achieving economy-wide decarbonization and lasting environmental benefits.”
OPG was the first Canadian utility to issue green bonds in Canada and, together with its subsidiaries, is the largest corporate issuer in Canada, with more than $3 billion to date.
S&P Global Ratings — a provider of independent, research-based evaluations of green bond and sustainability financing frameworks — completed a second-party opinion on OPG’s Sustainable Finance Framework. This evaluation indicated OPG’s framework is aligned with certain International Capital Market Association Principles.
Across Ontario, OPG operates 66 hydroelectric stations and 240 dams on 24 river systems.