Terna - Framework Report

The 2025 version represents a significant structural and strategic update to Terna's Green Bond Framework. The newer version shifts from a primarily explanatory document focused on company context and regulatory background to a more dynamic, visually-organized framework with explicit sections on Use of Proceeds, Project Evaluation and Selection, Management of Proceeds, and comprehensive Reporting commitments. The 2025 framework introduces a clearer strategic narrative organized around four pillars (Mission, Purpose, Vision, Innovation), incorporates a detailed table of contents with specific page references, commits to annual allocation and impact reporting with external assurance, and explicitly references net zero by 2050 alignment with European climate goals. These changes substantially enhance governance transparency, accountability, and the framework's alignment with international green bond standards.

• expanded Use of Proceeds — New document includes explicit 'Use of Proceeds' section (Section 3) with defined project categories and an annex listing examples of eligible green projects, whereas 2022 version focused only on general sustainability context without formalized use of proceeds categories.
• added Project Evaluation and Selection Process — 2025 version introduces dedicated Section 4 on 'Project Evaluation and Selection Process,' establishing formal governance mechanisms that were absent in the 2022 version.
• added Management of Proceeds — New Section 5 on 'Management of Proceeds' establishes formal procedures for tracking and managing bond proceeds, a governance commitment not present in 2022 framework.
• expanded Reporting — 2025 version commits to comprehensive annual reporting including allocation reporting, impact reporting, and annual assurance reports, replacing the 2022 version's implicit reporting approach with explicit, structured commitments (Section 6).
• added External Review — 2025 framework explicitly includes Section 7 on External Review with Second Party Opinion and Annual Assurance Report commitments, formalized governance mechanisms absent from 2022 version.
• added Climate Target — 2025 version explicitly references 'net zero by 2050, in line with European climate goals' as a strategic commitment, whereas 2022 version focused on general decarbonization and EU targets without explicit net zero commitment.
• expanded Framework Structure — 2025 version reorganizes content around four strategic pillars (Mission, Purpose, Vision, Innovation) with a formal table of contents and numbered sections, providing significantly greater clarity and formalization compared to 2022's narrative-focused structure.