SSE reaffirms its sustainability commitment through a new financing framework with BBVA as structuring advisor

SSE has launched a new Sustainability Financing Framework, fully aligned with the European Union Taxonomy, structured in collaboration with BBVA. This reinforces BBVA’s role as a strategic partner for companies transitioning towards low-carbon business models.

BBVA supported SSE, one of the leading issuers in renewable energy infrastructure and electricity networks across the UK and Ireland, in the structuring of its new Sustainability Financing Framework. This framework will enable SSE to issue green bonds, loans, as well as other sustainability-linked instruments, underpinned by high standards of transparency, integrity and quality, in line with investor and market expectations.

The framework defines two specific areas of sustainable investment: renewable energy generation and electricity network development. Both categories are fully aligned with the criteria set out in the EU Taxonomy, including the technical screening criteria (TSC), the ‘Do No Significant Harm’ (DNSH) principle, and minimum social safeguards. 

S&P Global’s Shades of Green has awarded Dark Green ratings to each of the two green use-of-proceeds categories (Renewable Energy and Electricity Networks), reflecting their strong technical basis and ambitious climate objectives. Furthermore, S&P confirmed that the framework is fully aligned with the 2025 Green Bond Principles (GBP), Green Loan Principles (GLP), Sustainability-Linked Bond Principles (SLBP), and Sustainability-Linked Loan Principles (SLLP).

The framework also integrates three sustainability-linked Key Performance Indicators (KPIs): Scope 1 greenhouse gas emissions intensity; renewable generation capacity connected to the transmission grid; and the representation of women in leadership roles. All three KPIs have been assessed by S&P Global as “highly ambitious”, underscoring SSE’s commitment to embedding measurable environmental and social targets into its financial strategy.

BBVA CIB continues to strengthen its role as a trusted advisor, supporting leading companies in their transition towards lower-carbon business models. Michael Ridley, ESG Debt Capital Markets, BBVA CIB, said: “This project reflects the strength of our long-standing relationship with SSE and the trust that underpins it. Working together, we have been able to design a framework that meets the highest market standards, and allows SSE to continue to show leadership in the labelled bond market.”

Francesco Thomas Bonini, Sustainability & Low Carbon Advisory, BBVA CIB added: “Our collaboration with SSE demonstrates how finance can be a powerful enabler of sustainability. At BBVA, we are committed to helping our clients turn their climate goals into tangible results, developing solutions that accelerate decarbonisation and create long-term value for society.”

Barry O’Regan, SSE’s Chief Financial Officer, said: “Investments in low-carbon infrastructure are a win-win for the economy and climate. By financing these investments through green bonds and sustainability-linked instruments, we are helping to attract more capital into initiatives that will drive progress towards net zero while holding ourselves to account on wider sustainability efforts. This updated Framework underlines our commitment to green finance, while we also remain focused on the important qualities of optionality, agility and discipline for future financing.”

This initiative reflects BBVA’s firm commitment to sustainable finance on a global scale, developing innovative solutions that promote responsible growth. Through projects such as this, the bank contributes to accelerating a transition in line with Europe’s climate objectives.