Sustainability-Linked Bond Framework

17 September 2021

  • N.V. Nederlandse Gasunie

Contents

Foreword

3

1. Gasunie's sustainability strategy

4

1.1

About Gasunie

5

1.2

Gasunie's Approach to Sustainability

5

1.3

Gasunie's role in the Energy Transition

6

1.3.1. Context

6

1.3.2 Decarbonising our own operations and infrastructure

7

1.3.3 Our Strategy in the Context of National Targets

7

1.3.4. Social impact of our strategy

9

1.4

Key energy and decarbonisation opportunities

9

1.4.1 Hydrogen

9

1.4.2 Green Gas

10

1.4.3 Heat

10

1.4.4 Carbon capture utilisation and storage ("CCUS")

10

1.5 External ESG Ratings

11

1.6 Rationale for Framework

11

2. Sustainability-Linked Bond Framework

12

2.1

Selection of Key Performance Indicators

12

2.1.1 KPI #1: Methane emissions

13

2.1.2 KPI #2: Scope 1 and 2 greenhouse gas emissions

14

2.2

Calibration of Sustainability Performance Targets

15

2.2.1 SPT #1: Reduction of methane emissions

16

2.2.2 SPT #2: Reduction of Scope 1 & 2 greenhouse gas emissions

18

2.3

Impact on Bond Characteristics

22

2.3.1 A coupon step-up or upward margin adjustment during

the lifetime of the bond

22

2.3.2 A coupon step-down or downward margin adjustment

during the lifetime of the bond

22

2.3.3 A cash-premium payment at maturity of the bond

22

2.4

Reporting

22

2.5

Verification and External Review

23

2.5.1 Second Party Opinion

23

2.5.2 Verification and Assurance

23

3. Appendix

24

3.1

CO2 equivalents emission reporting according to the

Greenhouse Gas Protocol

24

3.2

Description of initiatives to reduce our CO2 equivalent emissions

25

Disclaimer

27

Sustainability-Linked Bond Framework

3

Foreword

The European Union aims to be climate-neutral by 2050, which it intends to achieve through an energy transition. We at Gasunie believe this goal is within reach. As a leading infrastructure operator that matches energy supply to demand in the Nether- lands and the northern part of Germany, we are in a unique position to accelerate the energy transition. We are taking our responsibility by making significant investments in our essential infrastructure and via clear decarbonisation targets.

At the start of 2020, we launched Vision 2030 strategy, which captures our plans for the coming ten years. Over this period, we will transform from a gas transmission company into an energy infrastructure company. We believe that the transition to a sustaina- ble, reliable, and affordable energy supply can only be achieved through an integrated solution, involving a combination of multiple energy carriers (including electricity, hot water, and various gases).

The growing share of sustainable energy sources will result in increasing fluctuations in the energy supply and prices. Society must be able to count on a reliable energy supply even in the face of changing dynamics. To support our customers, we will continue to provide accessible and cost-effective natural gas transmission and storage.

Against this background, we are now launching this Sustainability-Linked Bond Framework ("the Framework") to further implement our Vision 2030 strategy, clearly communicate our transition strategy and partner with our investors in delivering this strategy. This Framework provides us with an opportunity to attach clear economic incentives to our commitment to achieve specific sustainability outcomes throughout our transition and decarbonisation process. Our Treasury Department will oversee all debt instruments issued under the Framework on an annual basis, to provide our stakeholders with a clear view of our sustainability related successes, challenges, risks and opportuni- ties.

At Gasunie, we believe in sharing knowledge and insight and in joining forces so that the energy transition can be executed. We hope you will join us in helping to realise this vision.

Han Fennema

CEO and Chairman of the Executive Board

  • N.V. Nederlandse Gasunie

1. Gasunie's sustainability strategy

1.1 About Gasunie

Gasunie is an energy infrastructure company that is wholly owned by the Dutch state. Gasunie's objective is to ensure safe, reliable, affordable and sustainable energy infrastructure services, ensuring that everyone has access to energy, always. This is of crucial importance to the economy and society. Gasunie has three strategic pillars, which rest on the foundations of its organization:

  • Ensuring a safe, reliable, affordable and sustainable gas infrastructure in its core area;
  • Contributing to an efficient gas infrastructure and services for a properly functioning European natural gas and LNG market;
  • Accelerating the transition to a CO2-neutral energy supply.

Gasunie's infrastructure, services and geographical position are at the heart of the north-western European gas market. Gasunie has two principal activities:

1. Providing regulated, open-access transport services through the gas transport network in the Netherlands and Germany.

Gasunie operates the infrastructure for the large-scale transport, storage and conversion of gas. At the moment, this is mainly natural gas, but the energy transition is increasingly bringing about a shift towards green gas and hydrogen. An increasing share of Gasunie's focus and management attention is going into the acceleration of a climate-neutral energy supply. As a result Gasunie is investing in projects in the areas of green gas, hydrogen, heating, CCUS (carbon capture, utilisation and storage) and LNG (liquefied natural gas).

2. Offering energy infrastructure services, either independently or in partnership with other parties.

Gasunie's transport and infrastructure services connect the producers of energy to the (end) users of energy. Gasunie operates and develops energy infrastructure and energy trading platforms: gas transport networks, international transit pipelines, gas storage, gas conversion, LNG infrastructure and virtual gas trading platforms. The company is also working on the construction and operation of hydrogen, heat and carbon capture, utilisation and storage (CCUS) networks. Gasunie gives third parties non-discriminatory access to its services.

Sustainability-Linked Bond Framework

5

Gasunie is a connecting factor in the energy value chain

1.2 Gasunie's Approach to Sustainability

Gasunie's strategy is well geared towards helping to achieve the UN Sustainable Development Goals ('SDGs')1 - contributing to a better society by ensuring a safe, sustainable, reliable and affordable energy infrastructure. We have incorporated four core SDGs into our Corporate Social Responsibility ('CSR') policy:

Besides the core SDGs, our CSR policy is also geared towards contributing to five supplementary SDGs focused on future-proofing our core activities.

The company has created nine Gasunie Green Deals2 which help translate the SDGs into concrete activities for our company and contribute to our vision for 2030. In the second half of 2021, we will add further substance to these Green Deals and seek to maximise the transparency and quantification of their impact. An overview of our Green Deals is shown below:

  • https://sdgs.un.org/goals
  • https://www.gasunie.nl/en/about-gasunie/csr/allocating-gasunies-green-deals-to-the-sdgs

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

NV Nederlandse Gasunie published this content on 21 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2021 13:31:06 UTC.