Investors

• To access a broad range of finance to obtain both the quantum and lowest cost compatible with the need for continued availability
• To manage our exposure to movements in interest rates to provide an appropriate degree of certainty as to our costs of funds
• To minimise our exposure to counterparty credit risk
  

• To provide an appropriate degree of certainty as to our foreign exchange exposure
• To maintain an investment grade credit rating for our regulated subsidiary Severn Trent Water Limited
• To maintain a flexible and sustainable balance sheet structure

We have developed a Sustainable Finance Framework to enable Severn Trent Plc and its subsidiaries to undertake future debt issues in a sustainable format.

This Framework is based on existing international standards:

• The Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines (SBG) as published by the International Capital Market Association (ICMA) in June 2018
• The Green Loan Principles (GLP) and Sustainability Linked Loan Principles (SLLP) as published by the Loan Market Association (LMA) in March 2018 and March 2019

In line with these Principles, the Framework is presented through five key pillars:

1. Use of Proceeds
   
2. Process for Project Evaluation and Selection
3. Management of Proceeds
4. Reporting
5. External review

DNV-GL has acted as our Second Party Opinion provider.