For us, sustainability is the linchpin for every business activity, including financial activities. That is why we have long chosen to embark on a path to a NET ZERO future also through the development and use of financial instruments that can help promote the energy transition process toward decarbonization.
On December 4, 2023, CAP Group released its Sustainability-linekd Financial Framework (SLFF), which describes the company's commitments and objectives in sustainable finance. This document establishes KPIs and targets that can be applied to any financial instrument and is the template for launching future bonds linked to emissions reduction and loss reduction wing.
In its Sustainability-linked Financial Framework, CAP Group has introduced three key indicators that are in tune with the strategies outlined in its sustainability plan. These indicators represent CAP's commitment to pursuing the goals set forth in the United Nations 2030 Agenda.
The first KPI (KPI#1) refers to CAP Group's commitment to reducing direct and indirect Co2 equivalent emissions. The goal is to reduce them by 42% by 2030. Not only that, but CAP Group has also chosen to commit to a second KPI (KPI#2) in reducing emissions generated by its upstream value chain, its suppliers, and downstream, its customers. CAP is committed to reducing these types of emissions, defined as Scope 3, by 25 percent by 2030. These are ambitious, science-based targets, also validated by SBTI, a major international network.
The third KPI (KPI#3) is particularly material for CAP Group and refers to the reduction of waterworks losses. This is an issue of great importance for CAP and more generally for the Water Service In Italy. Today, on average in Italy, leakage is around 40 percent while the networks managed by CAP Group have a leakage rate of 20.49 percent and the goal is to bring it down to 17 percent by 2030.
The framework also contains interim targets that will be reported periodically.