ST Telemedia Global Data Centres (STT GDC) has published a Sustainability-Linked Financial Framework (the “Framework”) that allows the company to issue sustainability linked financial solutions including, but not limited to, bonds and loans.
The Framework aligns with STT GDC’s commitment to sustainability, and its goal to achieve carbon neutrality by 2030.
Furthermore, the company’s launch of this framework is timely as it coincides with the Singapore government’s lifting of the moratorium on data centers, while setting stringent energy efficiency and sustainability requirements for new data center projects.
As such, many data center operators have been shifting towards green finance set-ups, and are keen on investing in sustainability-linked loans and bonds. In recent months, DigitalBridge’s Vantage Data Centers, Aligned Data Centers, and Equinix, have secured billions of dollars towards sustainability-linked bonds and loans that would either be used to modernise brownfield developments or build on greenfield sites.
Taking the Lead in Sustainability Financing
STT GDC’s Framework outlines three individual Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) which are fundamental to the business. The Framework focuses on increasing the use of renewable energy sources, reducing carbon intensity, and increasing the number of Green Data Centres.
In a press release statement, STT GDC noted that the Framework “would provide a clear path forward on how STT GDC [would] achieve its medium-to-long-term sustainability performance.”
Nelson Lim, Group Chief Financial Officer at ST Telemedia Global Data Centres, affirmed that “As one of the fastest-growing data centre providers, STT GDC reaffirms its commitment to continuously improve its own sustainability performance and that of our Group of Companies with the establishment of this framework.”
Lim added that “we remain steadfast in our belief that there is a positive correlation and mutual reinforcement between sustainability and financial performance. With sustainability as a fundamental pillar of our business and a critical factor in our long-term value creation, we have established this Framework to allow us to take the lead in sustainability financing.”
Sustainalytics, a Morningstar company and provider of ESG research, reviewed STT GDC’s Framework, and assessed that it was aligned with the Sustainability-Linked Bond Principles 2020 set out by the International Capital Market Association.
“Sustainable Transformation” is a key sub-category under the awards category “Outstanding Data Center Projects” for this year’s W.Media Asia-Pacific Cloud & Datacenter Awards. Thinking of nominating or sponsoring? Visit our Awards Page for more information. Nominations are open until 31st July.
