Hydro One is setting a new standard for sustainability in Canada’s energy sector. It became the first Canadian utility to publish a Sustainable Financing Framework in 2023 and updated it in 2024 to align with best practices.
The framework connects Hydro One’s funding to its sustainability goals such as reaching net zero by 2050. The framework also supports Indigenous procurement, with a goal of five per cent of sourceable spending by 2026.
How the Framework Works
The framework allows Hydro One to issue sustainable and green bonds, with proceeds directed to projects that advance clean energy, clean transportation, and socio-economic opportunities for Indigenous communities.
To ensure strong governance, Hydro One created a Sustainable Finance Working Group to review potential projects and recommend them to senior leadership. Projects include:
- Upgrading distribution infrastructure to improve grid reliability
- Developing smart grid technology
- Maintaining critical network assets
- Increasing Indigenous procurement
Hydro One is also the first company in Canada to finance Indigenous procurement entirely through sustainable bonds.
Impact So Far
Hydro One has issued $5.125 billion in green and sustainable bonds since 2023, making it Canada’s largest corporate issuer of ESG-labeled bonds. Of that, $3.175 billion is already funding green and social projects, such as:
- Grid reliability improvements like the Hawthorne–Merivale transmission upgrades
- New transmission stations in Kingsville–Leamington to support agricultural growth
Hydro One is also investing in clean transportation, financing 59 plug-in hybrid electric vehicles (PHEVs) and 25 electric vehicles (EVs) to reduce greenhouse gas emissions.
By linking financing to sustainability, Hydro One is building a cleaner energy future and supporting communities across Ontario.