Sustainable Finance

Contact is committed to a sustainable energy future and wants to take a leading role in supporting the transition to low carbon economy for the benefit of our environment, communities and economy.

To continue to support this transition, we have developed a Sustainable Finance Framework. This ties the financial impacts of our loan programme to our sustainability ambitions and creates an opportunity for lenders and investors to invest in certified Green Debt Instruments and recognise the value of our low carbon renewable generation assets.

Climate Bond Certified

Contact’s Sustainable Finance Framework has been refreshed to remain market leading. Investors have the opportunity to invest in certified Green Debt Instruments issued by a New Zealand company.

This is a progressive approach to green finance and will better support Contact’s past and future renewable energy generation initiatives whilst also providing investors and lenders with an opportunity to access a broad range of certified green debt instruments.

Sean Kidney, CEO Climate Bonds Initiative: 

"This NZD 1.8bn (USD 1.3bn) Green Borrowing Program from Contact Energy is our single largest Certification to date and a significant global boost for best practice standards in green finance.  Contact Energy are demonstrating the kind of corporate leadership we need to see replicated, both in trans-Tasman capital markets and internationally by more listed companies."

Our Framework is based on the Green Bond Principles, and has been certified against the Climate Bonds Standard V3.0, which are universally accepted as a basis for capital markets issuance of green bonds. It is supported by Green Assets, comprising geothermal assets that meet the CBI criteria. As the Hydro criteria have been finalised by the CBI, Contact are currently seeking to include these as Green Assets


The debt instruments certified under the Framework include Contact’s committed drawn bank facilities, commercial paper, retail bonds and US Private Placement Notes (Green Debt).


The proceeds of Contact’s Framework will be used to finance existing and future renewable generation assets that meet the Green Bond Principles and the Climate Bonds Standard (Green Assets). All of Contact’s geothermal assets (excluding Ohaaki power station) qualify to be included as eligible Green Assets.


Contact is committed to ensuring that the Green Debt under its Framework is always at least 1.0 times covered by the value of its Green Assets (the “Green Ratio”), 1.68x as at 30 June 2023.

Green Debt Instrument

For Contact’s existing lenders and debt investors that already have exposure to the debt instruments listed above, they will now hold a debt instrument that is a Green Debt Instrument under the Framework certified by the Climate Bonds Initiative.

Any new investors wanting to participate in Contact’s certified Green Debt Instruments should contact a broker (in the case of retail bonds) or a bank (in the case of wholesale bonds and commercial paper noting this is available to institutional investors only).

We’ve invested in building our renewable, flexible and reliable generation portfolio which has helped us to reduce our greenhouse gas emissions from generation by over 50% since 2018 and are targeting 95% renewable generation by FY27 (currently 93%).


Through our commissioning of Tauhara and expected closure of our gas fired Taranaki Combined Cycle plant we are supporting a just transition away from fossil fuels to help meet the massive anticipated demand for reliable renewable electricity. Our gas fired Te Rapa plant has been closed as of June 2023


Sustainable finance plays a key role in demonstrating to investors we are committed to our goals in a credible, transparent and material manner. For further information, see the Contact Energy - Sustainable Finance Framework.



Contact Green Borrowing Programme - CBI Certification
Sustainable Finance Framework – Independent Assurance Report
The Climate Bonds Disclaimer applicable to Certification can be found here
Green Borrowing Programme - Update Report FY23
GBP Update Report – Independent Assurance FY23