S&P Global Ratings Provides Aligned Opinion For Public Service Enterprise Group’s Sustainable Finance Framework

Published on

S&P Global Ratings has published a Second Party Opinion for Public Service Enterprise Group Inc.’s sustainability financing framework.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 2021 hedge fund letters, conferences and more

S&P Global Ratings has published a second party alignment opinion for Public Service Enterprise Group Inc.’s (PSEG) Sustainable Financing Framework. Through its subsidiaries, PSEG operates as an energy company primarily in the North-eastern and mid-Atlantic regions of the US. It operates through two segments – PSE&G and PSEG Power. The PSE&G segment transmits electricity, distributes electricity and gas to residential, commercial and industrial customers, invests in solar generation projects and energy efficiency and related programs, and offers appliance services and repairs. The Power segment operates nuclear, gas, oil-fired, and renewable generation assets. According to S&P, PSEG’s Sustainable Financing Framework is aligned with the Green Bond Principles (2021), the Social Bond Principles (2021), the Sustainability Bond Guidelines (2021), and the Green Loan Principles (2021).

Public Service Enterprise Group's Sustainable Finance Framework

  • PSEG’s use of proceeds alignment with the applicable principles was found to be “aligned”, given the company commits to using an amount equivalent to the net proceeds of financings issued under the framework exclusively to finance or refinance eligible environmental and social projects.
  • PSEG’s process for project evaluation and selection was also found to be “aligned”. PSEG’s Sustainable Financing Framework clearly outlines its project selection and includes an exclusionary list of investments to which net proceeds may not be allocated, including fossil fuel generation, fossil fuel energy efficiency investments, gas transmission, and distribution infrastructure, and any investments which received previous sustainable financing allocation by the company.
  • The company commits to tracking funds allocated to eligible green and social projects on an annual basis until issuance proceeds have been fully allocated. PSEG will also manage unallocated proceeds in line with the company’s standard treasury liquidity practices.
  • PSEG’s reporting was found to be “aligned” as the company commits to report on allocation of proceeds through an annual report which will be publicly available on the company’s website. Furthermore, in its annual reporting, PSEG commits to disclosing anticipated environmental and/or social impacts and the respective calculation methodology, where feasible.