Southern Company Becomes the First Large Cap Utility in the U.S. to Publish a Sustainable Financing Framework

Rhea-AI Summary

Southern Company has launched a Sustainable Financing Framework, marking it as the first large-cap utility in the U.S. to do so. This Framework allows the issuance of sustainable financing instruments to fund projects in renewable energy, energy efficiency, and social initiatives. The inaugural green bond of $400 million was issued by Southern Power on January 8, 2021, contributing to a total of nearly $3.9 billion in green bonds issued by the company. The Framework aligns with various sustainability principles and goals, reinforcing Southern Company's commitment to a net-zero future.

Positive

• First large-cap U.S. utility to publish a Sustainable Financing Framework.
• Inaugural green bond issuance of $400 million enhances funding for sustainable projects.
• Total green bonds issued now near $3.9 billion, positioning Southern Company among the top five U.S. corporate green bond issuers.
• Framework aligns with significant sustainability and social principles, supporting diverse supplier procurement and education assistance.

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• None.

ATLANTA, Jan. 11, 2021 /PRNewswire/ -- Southern Company has published a Sustainable Financing Framework ("Framework"), making it the first large cap utility holding company in the United States to do so. The Framework, published on January 4, 2021, allows the Southern Company and its subsidiaries to issue sustainable financing instruments and allocate the net proceeds to investments in eligible green and social project categories. These include projects related to renewable energy, energy efficiency, access to essential services (such as education and telecommunications), and employment advancement and development opportunities.

The Framework aligns with Southern Company's sustainability goals and its transition to a net zero-future. Southern Company was one of the first U.S. utilities to set bold, industry-leading goals to reduce greenhouse gas emissions from its system and has set a goal of net zero emissions by 2050.

Dedicated to being "a citizen wherever we serve," the Framework also aligns with Southern Company's social initiatives. Eligible social projects under the Framework include the procurement of products and services from diverse suppliers, education assistance for minority populations, as well as economic advancement and development opportunities for underserved employees, communities and students.

The inaugural bond under the Framework, a $400 million green bond, was issued on January 8, 2021 by Southern Power Company ("Southern Power"), a wholly-owned subsidiary of Southern Company.

Following Southern Power's $400 million green bond offering, the Southern Company system has now issued a combined total of nearly $3.9 billion in green bonds, which ranks within the top five among all U.S. corporate green bond issuers. For more information on the Southern Company system's previous green bond issuances, please click here.

The Framework is aligned with: The Green Bond Principles, 2018, Social Bond Principles, 2020, Sustainability Bond Guidelines, 2018 and Green Loan Principles, 2018. The Framework, including relevant United Nations Sustainable Development Goals (UN SDG) alignment, can be found here.

About Southern Company
Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women's Choice Award. To learn more, visit www.southerncompany.com.

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SOURCE Southern Company

FAQ

What is Southern Company's Sustainable Financing Framework?

It's a framework allowing Southern Company to issue sustainable financing instruments aimed at funding green and social projects.

When was the inaugural green bond issued by Southern Company?

The inaugural green bond of $400 million was issued on January 8, 2021.

How much has Southern Company issued in green bonds total?

Southern Company has issued nearly $3.9 billion in green bonds.

What are some projects funded by the Sustainable Financing Framework?

Eligible projects include renewable energy, energy efficiency, access to essential services, and employment opportunities.

What sustainability goals does Southern Company aim to achieve?

Southern Company aims for net zero emissions by 2050, among other sustainability initiatives.