In September 2022, we launched the Sustainability-Linked Financing (SLL) Framework, which is compliant with ICMA's Sustainability-Linked Bond Principles (SLBP) and Sustainability-Linked Loan Principles (SLL Principles). Our strategic plan includes ambitious measures to combat climate change and improve air quality in Poland. In the SLL Framework, we have defined 4 Key Performance Indicators (KPIs) that support the achievement of the UN Sustainability Development Goals (SDGs) and set ambitious, measurable targets for the coming years.
Based on the SLL Framework, in 2023 we issued bonds linked to sustainability targets with a total nominal value of almost PLN 4 billion, fully compliant with the international ICMA standard. Our bonds are linked to Target 4, which aims to gradually increase the share of carbon-free energy in the Group's energy mix to 30% in 2026.
The Group's syndicated loan with a total nominal value of 7.3 billion zlotys and 506 million euros is also linked to sustainability targets. The margin on the loan depends on the achievement of Target 2 (energy production from renewable sources) and Target 4 (increasing the share of carbon-free energy in the Group's energy mix).
In an effort to decarbonize its operations, Polsat Plus Group is committed to progressively reducing Scope 1 and Scope 2 greenhouse gas emissions. The increase in demand for digital communication and data transmission leads to an increase in energy intensity in the telecommunications sector. In order to reduce greenhouse gas emissions, our priorities are to gradually increase the use of renewable energy in Polsat Plus Group's energy mix and to improve energy efficiency.
Our second target reflects the movement of the Polsat Plus Group towards the development of renewable energy sources and carbon-free power generation, as defined by the 2023+ strategy. This is a highly strategic goal for the decarbonization of the Group's current and future operations. At the same time, due to the high share of coal in Poland's energy mix, investments in renewable energy sources also contribute to the country's decarbonization goals, in line with the Paris Climate Agreement.
Building a complete value chain based on green hydrogen not only expands Polsat Plus Group's business model, but also supports the Polish Hydrogen Strategy, which aims to maintain the competitiveness of the economy while reducing the negative impact on the environment. Therefore, we have set a target for green hydrogen production.
The fourth target is to gradually increase the use of carbon-free energy in the key operating companies of Polsat Plus Group, so that the share will reach 50% in 2030. This goal is particularly important in view of the growing demand for energy in the telecommunications sector in the context of the quest for climate neutrality.
