Staff Writer
In February 2023, Comcast issued its inaugural $1 billion green bond, enabling investors to support environmental initiatives that align with the company’s goal of achieving carbon neutrality by 2035.
Comcast has fully allocated $995 million in net proceeds according to its Green Financing Framework, which prioritizes renewable energy, energy efficiency, green buildings, clean transportation, and circular economy initiatives. An independent second-party opinion from S&P Global Ratings confirmed that the framework aligns with the ICMA Green Bond Principles (2021) and LMA/LSTA/APLMA Green Loan Principles (2021).
Key Areas of Investment
The proceeds from the green bond were directed toward “Eligible Green Investments,” which adhere to specific criteria outlined in the Green Financing Framework. These investments must have occurred after the bond issuance or within the two calendar years preceding it. Comcast’s management asserts that the net proceeds have been fully allocated to finance or refinance qualifying projects.
Renewable Energy
- Investments target long-term projects for constructing, developing, and operating renewable energy generation, including solar and wind. Qualifying projects include:
- Infrastructure for generation, transmission, distribution, and storage of renewable energy.
- Power purchase agreements (PPAs) and virtual power purchase agreements (vPPAs) that support adding new renewable energy to the grid.
Energy Efficiency
- Investments aim to reduce energy consumption and greenhouse gas emissions through various technologies and systems. Examples include:
- Upgrades like LED lighting, energy-efficient HVAC systems, and smart management applications are projected to achieve energy savings of 15-30%.
- Energy efficiency enhancement for consumer equipment, such as set-top boxes and televisions.
Green Buildings
- Funds are allocated to designing and constructing buildings seeking third-party sustainable certifications, such as LEED Gold or higher. Eligible expenditures include:
- Full costs associated with qualifying projects and necessary improvements to secure sustainability certifications.
- For campuses or communities, expenditures directly related to projects required for certification are eligible.
Clean Transportation
- The green bond supports investments in electric and alternative vehicles and the necessary infrastructure. Eligible expenditures cover:
- Acquisition of clean vehicles, including electric and hybrid types, with CO2 emissions not exceeding 50g per passenger-km.
- Installation of electric vehicle charging stations.
Circular Economy
- Projects focus on minimizing waste through sustainable practices within Comcast’s operations and supply chain. Initiatives include:
- Increased use of sustainable, recycled, refurbished, or reused materials.
- Recycling of packaging, reducing e-waste, and decreasing plastic usage.
Management Assertion
Comcast’s management asserts that the net proceeds of $995 million from the February 7, 2023 issuance of 4.650% notes due 2033 were fully allocated to finance or refinance qualifying Eligible Green Investments. Management is responsible for this assertion’s accuracy, presentation, and validity, including selecting and developing criteria for these investments.
