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 launched a new and updated 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 the 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 2021
• The Green Loan Principles (“GLP”) as published by the Loan Market Association (“LMA”) in February 2021 

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

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

DNV has acted as our Second Party Opinion provider.

In accordance with our Sustainable Finance Framework, we have provided reporting below that covers our inaugural £300m Sustainable bond issued in June 2020 and our £400m bond issued in February 2022.  The reporting details the proceeds of our bonds and how we have allocated them to eligible projects to continue our commitment to raise proceeds to support Green” and Social” purposes, to track results, and to communicate this information to investors.

In line with best practice Deloitte, our independent auditor, have provided limited assurance to confirm that the Selected Information is prepared, in all material respects, in accordance with the Allocation Reporting Criteria set out in our Framework. Their reports for each allocation report can be found below and were assurance against standard ISAE (UK) 3000.