Bell Canada has made a significant update to its securitization program, adding sustainability-linked pricing to the existing 2.3 billion Canadian dollars ($1.7 billion) initiative. This innovative approach will allow the company’s financing cost to be adjusted based on its performance in meeting two crucial greenhouse gas targets.
As part of this change, Bell Canada’s securitization program will now incorporate annual pricing adjustments. These adjustments will directly impact the financing cost, with reductions or increases determined by the company’s progress in achieving annual targets for reducing absolute scope one and two greenhouse gas emissions. The ultimate goal is to achieve a 58% reduction in emissions by 2030, using a 2020 base year for comparison. Additionally, Bell Canada aims to have 64% of its suppliers committed to science-based targets by the year 2026.
These amendments reflect Bell Canada’s unwavering commitment to environmental sustainability and corporate governance. The company’s actions align with its broader strategy, which includes several recent noteworthy initiatives. These include a C$500 million sustainability bond offering in May 2021, the conversion of C$3.5 billion committed credit facilities into a sustainability-linked loan in November 2022, as well as their introduction of sustainability-linked derivatives in May 2023.
Bell Canada, a subsidiary of BCE, is dedicated to driving positive change through its sustainability efforts. By implementing sustainability-linked pricing within its securitization program, the company sets a commendable example for others within the industry to follow.