Snam, an Italian leader in energy infrastructure, has moved significantly toward realizing its aggressive climate ambition through the completion of a €4 billion sustainability-linked revolving credit facility. The facility underlines the commitment to carbon neutrality by 2040 and net-zero emissions by 2050 that aligns with its ESG agenda.
The credit facility is underpinned by Snam’s Sustainable Finance Framework, which establishes key performance indicators (KPIs) tied to major climate action and diversity objectives, including Scope 1, 2, and 3 emissions, and promoting gender diversity among the group’s leadership roles. It aligns financing terms with measurable ESG outcomes in reaffirming its dedication to embedding sustainability into both its financial and operational strategies.
“This credit facility is another important step in Snam’s roadmap to achieve carbon neutrality and net zero, with sustainable finance playing a key role,” said Luca Passa, Snam’s Chief Financial Officer.
Two €2 billion tranches mature in three and five years, and it allows an expansion of up to another €1.1 billion. The terms have included performance-linked margin adjustments aligned with Snam’s own progress toward meeting the KPIs agreed with investors, further aligning the financing structure with sustainability objectives.
This is part of the general plan by Snam in trying to ensure that up to 85% of total funding comes from sources that are sustainable by the end of 2027. The credit line will be supported by a group of 24 leading financial institutions, including global giants like Mediobanca, Intesa, UniCredit, Bank of America, MUFG, BNP Paribas, CaixaBank, and Société Générale. This strong support not only strengthens Snam’s financial flexibility but also refines its financial structure so that the company can step up its energy transition programs.
“This transaction consolidates our financial flexibility and reinforces our commitment to sustainable finance,” added Passa.
This is €4 billion facility is a sequel to Snam’s recent issue of a €1.5 billion dual-tranche Sustainability-Linked Bond that marked its debut in the UK market. This step further demonstrates Snam’s leadership in leveraging innovative financing solutions to address pressing climate and diversity challenges.
In addition to carbon neutrality goals, the initiatives of Snam look forward to a Scope 3 approach; Scope 3 emissions have a great share in their carbon footprint. The decarbonization of the value chain puts the company forward as an industry leader by setting a benchmark for benchmarks in that area.
This latest credit facility incorporates measures aimed at enhancing gender diversity in leadership, which is one critical aspect of Snam’s ESG strategy. Along with its climate goals, Snam is also meeting broader societal challenges as the company progresses on its sustainability agenda for the business.
The transaction reflects the growing importance of sustainable finance in the utilities sector, where integration of climate KPIs into financial frameworks is increasingly critical. Snam’s efforts are setting a precedent for the industry, where financial innovation can drive meaningful progress in addressing climate change and promoting inclusivity.
As the company moves toward achievement of its 2040 and 2050 milestones, this credit facility acts as a foundation of that strategy, reinforcing its place as a leader in sustainable finance and a champion for the global energy transition.