Anglian launches Sustainable Finance Framework for its AMP7 capital programme

Anglian Water has launched a Sustainable Finance Framework to underpin the delivery of its capital programme for 2020-2025.

Under the Framework, Anglian will be able to issue various funding instruments referred to as ‘sustainable transactions’. These include Green, Social and Sustainability Bonds, private placements and leases, all of which integrate environmental and social criteria into investment decisions.

The Framework also includes Sustainability-Linked Bond Principles, which are specifically linked to the company's carbon targets. This means potential investors can support schemes which will directly contribute towards Anglian Water reaching its carbon net zero goal by 2030.

Anglian first pioneered the use of green finance in 2017, when it became the first European utility company to issue a sterling Green Bond on the stock market. Since then the company has issued a further six bonds, with a total value of £811m, to fund some 850 sustainable projects. The investments financed to date have avoided 160,736 tonnes of carbon, as measured in 2019.

Projects funded by the Green Bonds must contribute to five environmental objectives:

• climate change mitigation,

• climate change adaptation,

• natural resource conservation,

• biodiversity conservation and

• pollution prevention and control.

The company said because of the sustainability focus at the heart of its business, all capital expenditure already qualified for Green Bond finance.

Referring to the public purpose now enshrined in Anglian’s Articles of Association, chief financial officer, Steve Buck, said: “Securing green investment in the climate-resilient schemes we need to deliver for our region goes hand in hand with this wider purpose.”