STT GDC strengthens sustainability-linked financing framework

ST Telemedia Global Data Centres (STT GDC) has unveiled an enhanced Sustainability-Linked Financing Framework (SLFF), reinforcing the company's commitment to achieving carbon-neutral data centre operations by 2030. This update introduces more rigorous targets aimed at aligning financing strategies with impactful sustainability goals.

Originally introduced in 2022, the SLFF is an integral part of STT GDC’s Environmental, Social, and Governance (ESG) strategy. It enables the structuring of the company's financing through Sustainability-Linked Financing Transactions (SLFTs), such as Sustainability-Linked Bonds (SLBs) and Sustainability-Linked Loans (SLLs). Under this framework, STT GDC issued Asia's first-ever Sustainability-Linked perpetual securities in January 2024.

The revamped framework places a greater emphasis on stringent Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs). According to the company, the update signifies a more ambitious approach towards sustainability.

Bruno Lopez, President and Group Chief Executive Officer of ST Telemedia Global Data Centres, asserted, "Sustainability remains a priority for STT GDC, and the refined Sustainability-Linked Financing Framework demonstrates our unwavering commitment to achieving carbon-neutrality in our operations by 2030. This framework is essential to our strategy, aligning our financial practices with our deep commitment to sustainability as we continue to drive growth responsibly in the burgeoning global digital economy."

Three key targets have been set within the enhanced SLFF:

• Renewable Energy: Increasing the use of renewable energy to 85% by 2028.
• Carbon Intensity: Achieving a 70% reduction in carbon intensity from the 2021 baseline by 2028.
• Green Data Centres: Expanding the proportion of green data centres to 65% by 2028.

The framework's scope has also been expanded to include all subsidiaries across STT GDC's operational geographies. This broader application aims to ensure that sustainability commitments are integrated comprehensively across the company’s global operations, reinforcing its status as an industry leader in promoting sustainable practices.

Independent ESG ratings company Sustainalytics provided Second Party Opinion services for the project, further supporting the credibility and effectiveness of the enhanced SLFF. This external validation underscores STT GDC's dedication to long-term sustainability goals.

The enhanced framework reflects the company's intention to integrate its sustainability commitments across all global operations. Such actions not only aim to benefit the environment but also bolster STT GDC’s role within the data centre industry as a proponent of responsible and sustainable growth practices.