Snam Overhauls Sustainable Financing Framework with Green and ESG-Linked Pillars

Snam Overhauls Sustainable Financing Framework with Green and ESG-Linked Pillars

(IN BRIEF) Snam has introduced a revamped Sustainable Financing Framework built around two strategic pillars—Green Financing and Sustainability-Linked Financing. The Green pillar focuses on EU Taxonomy-aligned investments like pipeline retrofits, while the Sustainability-Linked pillar ties funding costs to ESG performance targets such as carbon neutrality by 2040 and Net Zero by 2050. With evaluations from ISS and Moody’s supporting both pillars, the updated framework strengthens the connection between Snam’s financing and long-term strategic goals, aiming to achieve 90% sustainable finance by 2029.

(PRESS RELEASE) MILAN, 17-Apr-2025 — /EuropaWire/ — Snam has unveiled a significant update to its Sustainable Financing Framework, reaffirming its commitment to achieving 90% sustainable finance by 2029. The revised framework introduces a two-pillar structure that reflects the company’s evolving approach to integrating sustainability into its funding strategy: Green Financing and Sustainability-Linked Financing.

For the first time, these pillars have been developed as distinct yet complementary mechanisms aligned with global best practices. The Green Financing pillar, evaluated by ISS, supports investments in environmentally aligned projects—most notably those compliant with the EU Taxonomy. Eligible investments include the retrofitting of existing pipelines, now explicitly validated as taxonomy-aligned. The structure adheres to ICMA’s Green Bond Principles and is fully compatible with the EU Green Bond Standard, ensuring rigorous annual reporting for transparency.

On the other hand, the Sustainability-Linked Financing pillar ties financial terms to the achievement of measurable ESG targets. Rated SQS3 “Good” by Moody’s, this component links cost of capital to progress on key climate and social objectives, including Snam’s goal to achieve carbon neutrality across Scope 1 and 2 emissions by 2040 and Net Zero across all scopes by 2050. The framework introduces standardized KPIs on emissions and social impact, further substantiated by Snam’s 2024 Net Zero Assessment, which serves as a benchmark for its decarbonization trajectory.

“This updated framework marks a crucial alignment of our financing strategy with long-term corporate ambitions and evolving investor expectations,” said Nicole Della Vedova, Snam’s Executive Finance Director. “By combining project-focused Green Financing with results-driven Sustainability-Linked instruments, we’re reinforcing the synergy between financial strategy and sustainable value creation.”

The new Sustainable Financing Framework is now available on Snam’s investor relations portal, along with more details on the company’s overall sustainability strategy.

More details on Snam’s Sustainable strategy and the updated Framework are available at https://www.snam.it/en/investor-relations/investing-in-snam/debt-and-credit-rating/sustainable-finance.html

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SOURCE: Snam