Tideway, the company building London’s super sewer, has earned the highest green rating by a new S&P Global Ratings measurement of its financing and how it reflects the project’s contribution to sustainability.
Tideway has been rated ‘Dark Green’ under S&P’s Shades of Green methodology which assesses a company's financing or framework and measures the extent of its contribution to a low-carbon and climate resilient future. The company was also awarded an ‘Excellent’ governance score.
The Shades of Green methodology is an independent, point-in-time analysis of a sustainable finance instrument, program, or framework. The shades range from Dark Green, awarded to projects like Tideway that have demonstrated that their activities correspond to a low carbon climate resilient future. At the other end of the spectrum is Red, which relates to activities that are inconsistent with, and are likely to impede that transition. The rating provides Tideway with a Second Party Opinion (SPO) on the £250 million borrowing Tideway secured in June which is due to fund in October 2023.
Tideway has been awarded Dark Green status in recognition of the substantial benefits the project will bring to improve water quality within its 25km stretch of the River Thames. Aside from the core benefits such as substantial reduction in sewage pollution, sewage derived litter and human health risk days; the project’s additional benefits have been recognised and its Governance structures and processes have been rated ‘Excellent’.
Elina Beale, Tideway Head of Treasury said: “I’m very pleased with S&P’s report and the shading of our latest debt transaction which confirms it is fully aligned with the Green Bond Principles and is a useful confirmation of the huge environmental benefits the Thames Tideway Tunnel will bring once it’s operational”.
The rating comes after the project’s ESG (environmental, social, and corporate governance) Evaluation by S&P increased to 77 (up from 76 last year) recognising the view that “sustainability is well-embedded in the company's strategic objectives and operations.”
It also follows the publication of Tideway’s latest Sustainability Report, which details the progress and impact of the project’s legacy programme.