Electricity Generation Company definition

Criteria
1

Good morning.

Would it be possible to clarify the definition of electricity generation company to be used for the “corporate loan-electricity generation” asset class? Is it correct to include in the asset class companies whose main activity is electricity generation?

In the new Fossil Fuel Position Paper draft, it is indicated that also companies producing power from gas, coal and fuel are defined as fossil fuel companies (included in the “downstream” section of annex 2) and therefore it is not totally clear whether a company producing electricity for example from gas is to be included in the asset class “corporate loan-electricity generation” or is to be considered as a fossil fuel company, and therefore to be included in the asset class “other long term corporate loans”.

Many thanks for your help,
Vittorio

2 Likes
2

Hi! Is there any update on the question above?

Thanks you so much

Giulia

3

Activities in the electricity generation sector shall be covered by an electricity generation target - that has not changed.

Depending on the definition/threshold used for the fossil fuel company/value chain, however, some of FI-C17.4 for the pilot test version 2.0 of the Near-Term Criteria and Recommendations for FIs, could also apply if FIs choose to use the interim criteria as a method.

For example, based on the proposed pilot version, if FIs define coal and oil & gas companies using the GCEL and GOGEL, then utilities should not be affected (unless they are somehow on those lists).

4

Hi Howard,

Linked to this topic:
Both within the asset classes equity and bonds, there is a specific subclass for ‘Electricity generation’ and a specific subclass for ‘Fossil fuels’. Do I understand correctly that for fossil fuels, companies involved in the distribution of fuels are to be included (e.g. a pipeline operator), but for electricity, distributors are excluded (to be covered under ‘other sectors’)?

Best regards,
Stef

Edit with extra question: is there an overview available of which NACE codes should be covered under each of the subclasses?