REG - SSE Plc - SSE’S Net Zero Acceleration Programme

SSEAnnouncement

17/11/2021 07:05

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RNS Number : 6096S  SSE PLC  17 November 2021

This announcement contains inside information under Article 7 of the Market
Abuse Regulation (EU) No 596/2014, as it forms part of retained EU Law as
defined in the European Union (Withdrawal) Act 2018 ("UK MAR").

 

SSE'S NET ZERO ACCELERATION PROGRAMME

STRATEGIC UPDATE

17 NOVEMBER 2021

·   SSE announces 'Net Zero Acceleration Programme' to accelerate clean
growth, lead the energy transition and maximise value for all stakeholders

·   Plans include enhanced, fully funded £12.5bn strategic capital
investment plan to 2026 alongside ambitious 2031 targets, aligned with net
zero and 1.5 degrees

·   Net Zero Acceleration Programme represents optimal pathway to
consolidate SSE's position as UK's clean energy champion, enabling delivery of
over 25% of UK's 2030 40GW offshore wind target and over 20% of UK electricity
networks investment, whilst deploying flexibility solutions and exporting
renewables capabilities overseas

KEY ELEMENTS OF NET ZERO ACCELERATION PROGRAMME

Fully-funded £12.5bn five-year strategic capital investment plan to 2026
focused on net zero infrastructure:

·   £12.5bn net capex investment to 2026 represents +65% step-up in annual
investment (£1bn additional capital investment per year) on previous plan
with over 2.5 times more capital now allocated to renewables growth.

·   Investment will deliver ~4GW net renewables capacity additions
(doubling renewables capacity) and grow electricity networks underlying RAV to
~£9bn net of assumed 25% minority stake sales.

·   The plan is supported by further renewables partnering; and minority
stake sales in both SSEN Transmission and SSEN Distribution (modelling
assumption of early FY24) to unlock value and optimise investment.

·   Reshaped capital allocation to c40% Networks, c40% Renewables, c20%
other flexible generation, distributed energy and customer businesses.

·   Adjusted EPS CAGR of 5-7% forecast to March 2026(1), after assumed
minority interest.

·   Growth-enabling dividend, paying at least £3.50 per share across the
five years, comprising:

o  completion of current RPI linked dividend plan to March 2023

o  followed by a rebased dividend to 60p in 23/24 with attractive annual
growth of at least 5% to March 2026

o  scrip dividend option capped at 25%

·   Net debt to EBITDA target of 4.5x, aligned with a strong investment
grade credit rating.

(1)Relative to FY21 87.5p

Plan delivers accelerated growth at attractive returns into 2026:

·   Renewables net installed capacity increasing by 4GW, doubling existing
capacity.

·   Increases and maintains a sustainable development pipeline in excess of
15GW.

·   Networks businesses' RAV forecast to grow at c.10% gross CAGR.

·   Compelling returns targeted, focusing on high quality assets with
common Group capabilities:

o  Renewables offshore: at least 10% equity returns (excluding developer
profits) with onshore: WACC plus 100-400 bps project returns.

o  New technologies WACC plus 300-500 bps given expected technology risk and
construction risk specific to each project.

o  Networks 7-9% return on equity, assuming a level of outperformance and CPI
inflation of 2% p.a.

Programme provides the platform for ambitious new 2031 targets including:

·   Fivefold increase in renewables output to 50TWh p.a.

·   Maintaining a sustained >15GW renewables pipeline, delivering
>1GW net additions p.a. and increasing renewable and other low-carbon
generation capacity to >16GW.

·   8-9% gross networks RAV CAGR for electricity networks, to reach
£11-13bn net.

·   Meeting revised 1.5 degree celsius science-based carbon targets by
2030.

Sir John Manzoni, SSE plc Chair, said:

"Over the past months the Board of Directors has carefully considered a range
of strategic alternatives for the next phase of SSE's growth and development.
Having reviewed all options and taken independent advice, this resulting
strategic update significantly accelerates growth in our core businesses,
whilst providing efficient and competitive sources of financing and ensuring
SSE continues as a reliable and resilient operator of critical infrastructure.

"The Board believes these plans represent the optimal pathway for SSE,
positioning it as the UK's clean energy champion with the scale to enable the
delivery of over 25% of the UK's 40GW offshore wind target and over 20% of
upcoming UK electricity networks investment, deploy flexibility solutions to
keep the lights on, whilst exporting its renewables capabilities overseas. SSE
is creating long-term value for all of our stakeholders."

Alistair Phillips-Davies, Chief Executive, said:

"In recent years we have made great progress in focusing the SSE Group on the
delivery of the electricity infrastructure needed in the transition to net
zero. We are constructing more offshore wind than anyone else in the world
right now and expanding overseas, delivering the electricity networks needed
for net zero and pioneering carbon capture, hydrogen and battery technologies
to deliver system flexibility.

"Our Net Zero Acceleration Programme represents the next phase of SSE's growth
and involves a substantial ramping up of investment - equivalent to nearly
£7m each day in net zero infrastructure - backed up by clear delivery and
funding plans. It builds on our existing strong platform for growth and highly
desirable pipeline to create significant value for shareholders and wider
society while further enhancing the long-term potential of the business.

"Today's announcement means SSE will maximise its long-term potential and
capture growth opportunities during a critical time for the energy sector,
strengthening and growing its core businesses, creating jobs, delivering for
wider society and offering attractive shareholder returns."

 

Management presentation webcast and teleconference

Today at 8.30am SSE is holding a live virtual strategic and capital investment
update together with presenting its Interim Results to 30 September 2021.
Investors and analysts are invited to join the live broadcast by visiting
www.sse.com and following the links on either the homepage or investor pages;
or directly using https://edge.media-server.com/mmc/p/en9mbrvc
(https://edge.media-server.com/mmc/p/en9mbrvc) . This will also be available
as a teleconference, details below. Both facilities will be available to
replay.

 Confirmation Code: 2573869
 Location                    Phone Type  Phone Number
 United Kingdom              Toll free   0800 279 6619
 United Kingdom, Local       Local       +44 (0) 2071 928338
 United States, New York     Local       +1 646 741 3167
 United States/Canada        Toll free   +1 877 870 9135

 

 Contact Details
 Institutional investors and analysts  ir@sse.com                + 44 (0)345 0760 530
 Shareholder services                  SSE@linkgroup.co.uk       + 44 (0)345 143 4005
 Media                                 media@sse.com             + 44 (0)345 0760 530
 MHP Communications, Oliver Hughes     oliver.hughes@mhpc.com    + 44 (0)7885 224 532
 MHP Communications, Simon Hockridge   simon.hockridge@mhpc.com  + 44 (0)7709 496 125

 

BACKGROUND TO STRATEGIC UPDATE

Global efforts to tackle the climate emergency present an enormous opportunity
for SSE. COP26, where the UK Government asked SSE to participate as a
Principal Partner, served to highlight the critical importance and global
relevance of the Group's strategy of creating value for shareholders and
society in a sustainable way by developing, building, operating and investing
in the electricity infrastructure and businesses needed in the transition to
net zero. SSE's strategy has been highly effective in generating a wealth of
growth opportunities in its networks and renewables businesses as well as in
the highly complementary businesses which make up the SSE Group.

Correspondingly, as highlighted in its Full-year Results in May 2021 and the
recent pre-close statement on 29 September 2021, SSE has been undertaking a
comprehensive assessment of its opportunities to drive sustainable long-term
value for all of its shareholders. This has included the evaluation of the
scale of its capital investment and growth opportunities, as well as the
optimal sources of funding to underpin an acceleration in growth. This
assessment has included an in-depth examination of a number of strategic
options, involving detailed external and independent advice, as well as
engagement with shareholders and other stakeholders. Throughout this
evaluation, the SSE plc Board has been carefully considering the longer-term
impacts on shareholders and wider society.

SSE's five-year strategic capital investment plan to 2026 will deliver
significantly enhanced investment in a balanced mix of low-carbon
infrastructure split approximately 40-40-20 across networks, renewables and
other net-zero-aligned business that fit strategically within the Group, while
retaining a strong investment-grade credit rating. It will be fully funded
through operating cashflows, debt funding and further partnering, including
assumed minority 25% stake sales in both SSEN Transmission and SSEN
Distribution. In addition, following completion of its existing dividend
commitment to March 2023, SSE is announcing a rebase of its dividend to 60p in
23/24 with a target of annual growth of at least 5% per annum to March 2026.

SSE believes that the programme announced today represents the optimal pathway
for SSE to continue to maximise its significant growth potential and deliver
for shareholders and wider society. Through these plans SSE expects to enable
delivery of over a quarter of the UK's 40GW offshore wind target by 2030,
enact over 20% of upcoming UK electricity networks investment, deploy
technologies to provide system flexibility and accelerate the deployment of
its renewables capabilities overseas. In doing so, these attractive
investments will be underpinned with a clear funding plan to drive long-term
value for shareholders.

CONSIDERATION OF ALTERNATIVE STRATEGIC OPTIONS

As noted in an RNS published on 20 September, there has been recent media
speculation regarding a break-up of the SSE Group. The Board carefully
considered a wide range of available strategic options, including a separation
of SSE Renewables. This was a rigorous process involving constructive
engagement with shareholders, and consideration of independent advice. The
Board ultimately assessed that separation would not be the best route for
growth, execution and value creation, and was not therefore in the long-term
interests of its stakeholders, primarily because:

·   Delivering on the Group's exciting growth opportunities across its core
electricity infrastructure businesses is the fundamental long-term driver of
value. Growth is best achieved through the balance sheet strength and funding
options derived from a mix of market-based and economically-regulated
businesses, with the latter providing both capital strength and growth.

·   The loss of scale, reduced capital structure and weaker credit position
of a standalone renewables business would ultimately impact on the ability to
fund larger scale projects such as Dogger Bank and Berwick Bank.

·   Separation would risk losing valuable growth options arising from SSE's
integrated business model and position across the clean energy value chain in
areas such as carbon capture and storage, hydrogen and distributed energy
solutions, amongst other emerging technologies.

·   A break-up of the Group would result in substantial dis-synergies and a
loss of the shared services and world class capabilities that SSE's
electricity-focused business mix provides. A considered, detailed assessment
of quantifiable dis-synergies of approximately £95m/year of recurring value
lost through a break-up, approximately £200m of one-off separation costs, and
a wide range of intangible dis-synergies such as loss of shared skills,
natural hedges and liquidity benefits.

·   There would be a period of significant disruption, cost and uncertainty
to the business, its partners and counterparties leading to project delays.
This would limit SSE's ability to secure pipeline opportunities at a critical
time for accelerated net zero investment.

The Board concluded that SSE is optimally placed as an integrated electricity
infrastructure company and separation would diminish the highly attractive
growth potential across SSE's businesses and negatively impact the fundamental
long-term value for shareholders and stakeholders. This includes the Group's
ability to deliver on its 1.5°C-aligned science-based targets announced today
which are integral to the Net Zero Acceleration Programme.

STRATEGIC AND CAPITAL INVESTMENT UPDATE

Clear long-term strategy with focused business mix

SSE is a purpose-led company, seeking to provide the energy needed today while
building a better world of energy for tomorrow. It is a long-term business
with a clear strategy aligned with the transition to net zero.

Following the sale of Energy Services and a subsequent successful and targeted
disposals programme, which is expected to raise in excess of £2.8bn headline
proceeds, SSE's focus is now clearly on clean electricity infrastructure. Its
core businesses are renewables and regulated electricity networks - businesses
which have strong, net zero-linked growth potential based on government policy
alignment, and common capabilities in the development, construction, operation
and financing of world-class, highly technical electricity assets.

These core businesses, together with strategically-aligned thermal, customer
and trading businesses - provide an ESG-linked growth investment opportunity;
an attractive mix of regulated and market-based income streams; and valuable
linkages with each other which support efficient financing. SSE's business mix
is very deliberate, effective, fully focused, and perfectly set up to prosper
on the journey to net zero.

With its UK-listing and investment in key parts of the electricity value
chain, SSE has effectively become the UK's national clean energy champion,
delivering the projects that society needs and trusted to build and operate
critical infrastructure in the national interest.

Capital investment plans to 2026

In May, SSE highlighted it had identified significant further attractive
growth opportunities for additional investment across the Group. These include
opportunities above and beyond its already approved capital expenditure plans
under RIIO-T2; in projects from its highly attractive renewables pipeline; in
medium- to long-term growth options in flexible technologies critical to net
zero in the form of pumped storage hydro, carbon capture and storage, hydrogen
and batteries; and in selective partnerships focusing on international
expansion in renewables.

With these opportunities in mind, SSE is today setting out a new five-year
capex plan that aligns capital allocation with the Group's greenhouse gas
emission targets and its changing energy mix.

 Share of Capex                                Previous plan  Updated plan
 Electricity networks                          ~65%           40%
 Renewables                                    ~25%           40%
 Other flexible generation / energy solutions  ~10%           20%

In doing so, SSE is seeking to maximise total shareholder returns from both
earnings and asset value growth from its wealth of net zero-orientated
opportunities, while remunerating shareholders with a rebased dividend with
attractive growth. The plan represents a floor target, not a ceiling, and SSE
will be well positioned to take other opportunities as they emerge.

SSE's accelerated £12.5bn capex plan, an increase of two thirds on its
current £7.5bn plan, equates to an average of £2.5bn per year to 2026 and is
broadly split as follows:

·    Regulated electricity networks: c40% (net of assumed stake sales)

With electricity demand expected to more than double by 2050, electricity
networks are at the heart of the transition to net zero. SSEN Transmission and
SSEN Distribution continue to form a key part of the low-carbon electricity
core of SSE. With a significantly expanding capex programme, SSE plans to
extend its partnering approach to networks to maximise its ability to drive
RAV growth while providing the flexibility to pursue other opportunities
across the Group (see below). The updated plan will deliver over £5bn (net)
in networks capex.  Transmission capex is expected to total over £3bn net
including c.£1bn net investment in transmission projects such as the Skye
reinforcement, Eastern HVDC and North Argyll projects which are expected to
progress through the Needs Case assessment process.  Distribution capex plans
include significant net zero-aligned investment through the RIIO-ED2 business
plan to be submitted in December 2021. Electricity networks RAV is expected to
increase from £7.4bn in FY21 to close to £12bn (gross) by FY26 - a c.10%
CAGR - or almost £9bn net after accounting for minority 25% stake sales
assumed for modelling purposes in early FY24.

 

·    Renewable energy generation: c40%
SSE's significant capabilities in a growing international market will lead to
an expansion of its already attractive secured pipeline of 10GW in order to
provide strong growth in terms of both long-term earnings and asset values.
Around 50% of this renewables capex is on assets currently under construction,
around 30% is forecast spend on projects currently under development and 15%
on future pipeline development with the remaining 5% on operational
maintenance and lifespan extensions.

 

·    Other flexible generation, distributed energy and customer
businesses: c20%

The extreme volatility seen in energy markets in recent months has made clear
that technologies like carbon capture and storage, hydrogen and batteries -
where SSE has highly attractive projects - will be critical to society in the
transition to net zero, enabling enhanced renewables deployment by balancing
the system. These technologies can provide attractive earnings growth and
returns commensurate with the relative immaturity of the technologies,
balancing SSE's overall returns profile, as well as providing a natural hedge
against renewables variability. The deployment of these technologies by SSE
Thermal and SSE's Distributed Energy business will enable the Group to capture
value in increasingly vital low-carbon flexibility markets. SSE's customer
businesses, meanwhile, remain an important route to market for low-carbon
energy.

By 2026, this capital investment plan is expected to give SSE:

·    A doubling of installed renewables capacity to 8GW (net), supported
by a sustainable secured pipeline in excess of 15GW providing the platform for
1GW (net) installed additions per year thereafter;

·    Electricity networks RAV to reach almost £9bn (net), after assumed
25% minority stake sales in SSEN Transmission and SSEN Distribution, with
further opportunities providing the platform to maintain a gross CAGR of
c.8-9% to 2031; and

·    Adjusted EPS CAGR of between 5-7% underpinned by c.60% index-linked
revenue streams; and

·    A rebased dividend with attractive annual growth, delivering total
dividends of 350p per share through to 2026.

This capital investment will be allocated based on clear internal investment
criteria intended to maximise total shareholder returns while ensuring
strategic alignment with SSE's net zero electricity focus. The investment
criteria include:

·    Strategic fit. Aligned with SSE's commitment to its 1.5 degree
science-based carbon targets, business mix and capabilities.

·    Optimum mix. Balanced risk and returns through a mix of economically
regulated and unregulated, market-based assets.

·    Targeted returns. Focusing investments in high quality assets where
common capabilities across the Group can deliver favourable risk-adjusted
project returns, namely:

o  Renewables targeting at least 10% equity returns (excluding developer
profits) for project-financed offshore wind and WACC plus 100-400 bps project
returns for unlevered onshore wind;

o  New technologies targeting WACC plus 300-500 bps reflecting expected
technology risk and construction risk specific to each project; and

o  Networks targeting 7-9% return on equity, assuming a level of
outperformance and CPI inflation of 2% p.a. and actual gearing ratio of 65%.

A dividend plan to support accelerated growth

SSE has confirmed its previous commitments to shareholders to target dividend
increases in line with RPI in the remaining two financial years of the
previous five-year plan to 31 March 2023. Looking further ahead, the Board has
considered what the right dividend policy should be thereafter. In doing so,
the Board has assessed and balanced a number of factors, including: financial
and sector market trends; credit metrics and cashflow profiles; total
shareholder returns; growth opportunities; and different funding options,
including minority network stake sales.

The Board believes that SSE's accelerated capex plan to 2026 and the
opportunities it creates in the years that follow will require a dividend plan
which is aligned to this growth profile. Correspondingly, following fulfilment
of its existing commitments to 22/23, it will rebase its dividend to 60 pence
in 23/24, before targeting at least 5% dividend increases in 24/25 and 25/26.
This will amount to a total dividend per share of at least £3.50 over the
five-year period to March 2026.

SSE will also retain a scrip dividend option for shareholders but will
restrict earnings dilution by capping take-up at 25% from FY22 onwards.

The Board believes that this rebased dividend with attractive growth balances
income to shareholders with appropriate funding and a credit rating for an
accelerated growth plan that will ultimately create greater value and total
return for shareholders over the long term.

Funding the five-year capex plan

The breadth and quality of the opportunity outlined above is unique to SSE and
its very deliberate, net zero-orientated business mix.

SSE has repeatedly demonstrated through effective capital allocation, raising
debt at highly attractive terms, capital recycling and partnering that it can
take advantage of the accretive opportunities it creates. It has a proven
ability to realise value from disposals of non-core assets, securing over
£2.8bn in headline consideration from the disposals programme launched in
June 2020, well ahead of original guidance.

It is this disciplined approach that will guide delivery of a plan that
creates a platform for future growth and returns while providing optionality
over any further favourable opportunities that arise. The plan is also
consistent with an investment grade credit rating, an efficient balance sheet
and a robust funding structure.

·    Continued partnering to realise value and grow Renewables

Well-chosen partnering is already a key element of SSE's financial strategy
and will be critical to future plans. Having equity partners at a 'project'
level, combined with efficient project finance, has allowed SSE to spread
project risk and financial exposure, avoid significant increases in
non-earning net debt and also crucially to secure developer premiums on
projects at an early stage. By securing that value sooner, and reinvesting it
in new development projects, SSE Renewables can grow faster than would
otherwise be possible. Given SSE's proven track record in creating value and
realising developer premiums through equity sell-downs at final investment
decision (FID) or commercial operation date (COD), the 2026 plan includes the
recent sell down of a 10% stake in Dogger Bank C and assumes a future sell
down of a stake in Berwick Bank.

·    Asset disposals, including a minority stakes in networks

SSE has consistently stated that it sees potential to extend the SSE
Renewables partnering approach through sales of minority interest stakes in
its electricity networks businesses. While exact timing and scale of any stake
sale is yet to be decided, SSE's £12.5bn net capex plan includes as a
modelling assumption the sale of a 25% stake to minority financial partners in
both its Transmission and Distribution businesses in early FY24. While these
are high-quality, core businesses and SSE will retain control, the scale of
potential growth and the associated investment required mean that bringing in
minority partners will create greater long-term value by enabling SSE to
harness this significant growth whilst maintaining an attractive balance of
capital allocation across the Group.

In addition to this assumed minority stake sale, the plan also assumes the
completion of the disposal of Scotia Gas Networks (SGN) by the end of FY22 as
well as the potential disposal of other residual non-core assets such as Neos
Networks (formerly SSE Telecoms).

·    Earnings and net debt

The capital allocation outlined in the strategic plan is expected to drive a
5-7% Group adjusted EPS CAGR in the period to March 2026 (after assumed
minority interest) in the period to March 2026, which is underpinned by c.60%
of index-linked revenue streams.

SSE expects to retain a strong balance sheet. The Group's business mix, its
future capital investment and funding plans are designed to ensure it retains
an investment grade rating and is aligned to a target net debt to EBITDA ratio
of 4.5 times.

SSE has an average debt maturity of 7.2 years with 100% of its debt at fixed
interest rates.  As the UK's leading corporate issuer of green bonds, the
breadth and quality of SSE's assets and balance sheet mean it is able to
secure ESG-aligned funding at attractive rates.

AMBITIOUS TARGETS BEYOND TO 2031

The scale of the capital investment plans laid out today will not only
accelerate growth for the period to 2026; it will also pave the way for SSE's
businesses to grow substantially through the second half of the decade and is
necessary to deliver 1.5 degree aligned carbon targets. Looking further ahead,
SSE is therefore setting out a number of key targets for the 10 years to 2031:

·    Maintaining a sustained renewables pipeline in excess of 15GW,
reflecting SSE's previously stated ambition to reach additions of at least 1GW
per year net assets during the second half of the decade, through domestic and
international opportunities.

·    A trebling of SSE's owned renewables capacity to over 13GW (net) from
c.4GW today.

·    A fivefold increase in SSE's renewables output to c.50TWh in 2031.

·    An increase to £11-13bn (net) in SSE's electricity networks RAV,
after assumed minority stake disposals, from £7.4bn (gross) at FY21,
equivalent to an 8-9% gross CAGR.

·    Following the dividend certainty over the five-year plan, the aim is
to set SSE's businesses up to support a similar level of annual dividend
growth post 2026 as 10-year ambitions are delivered.

1.5° C aligned science-based carbon targets

The acceleration towards net zero is integrated within the significant
increase in investment and ambition outlined in today's Net Zero Acceleration
Programme. SSE's investment plans support the renewal of SSE's existing
greenhouse gas ('GHG') emission targets to align with the Science Based Target
Initiative ('SBTi') power sector 1.5°C-aligned science-based target criteria.
SSE's renewed science-based targets are to:

·    Reduce scope 1 GHG emissions by 78.2% per gCO2e/kWh between FY18 and
FY30.

·    Reduce absolute scope 1 and 2 GHG emissions by 72.5% between FY18 and
FY30.

These revised targets for scope 1 and 2 absolute emissions cut in half the
previously planned emissions for 2030.

In committing to achieve net zero emissions by 2050 at the latest across all
scopes of emissions, SSE's new 1.5°C-aligned science-based targets for scopes
1 and 2 are supplemented by SSE's existing interim scope 3 targets, also
verified by the SBTi:

·    Engage with 50% of suppliers by spend to set an SBT by FY24.

·    Reduce absolute GHG emissions from use of products sold by 50% by
FY34 from a FY18 base year.

These targets are central to the Group's purpose, vision and strategy; are
fundamental to the capital investment and allocation plans outlined today; and
are aligned with government and stakeholder demands to achieve net zero
emissions and prevent global warming exceeding 1.5°C above pre-industrial
levels.

Summary - an ambitious plan for the future

Over the past two years, SSE has transformed through a number of strategic
disposals to retain high quality assets firmly centred on renewables and
regulated electricity networks with net-zero aligned growth potential. It is
the leading electricity infrastructure company in its home market which is the
world's largest offshore wind market and the world's fifth largest economy.
SSE's integrated business model is a strong basis for expanding in related
complementary businesses such as hydrogen and carbon capture, as well as
internationally with well-chosen partners through its renewables business.

The strategic review carried out by the Board has been rigorous and robust,
considering all strategic and structural options for the business. The
resulting Net Zero Acceleration Programme announced today leaves SSE in a
strong financial position to unlock sustained long-term shareholder value from
the opportunities it is creating from its clear net zero-focused strategy.

Today's Strategic Update not only reflects the immediacy of the
decarbonisation opportunities SSE faces, but also takes into consideration the
views of all stakeholders.  SSE is providing shareholders with a diversity of
business opportunities and significant ESG-aligned optionality for future
growth.

Ultimately, SSE believes its Net Zero Acceleration Programme represents the
optimal pathway to:

·    Drive sustainable long-term value for all stakeholders;

·    Deliver on the scale of SSE's capex investment and growth
opportunities; and

·    Optimise the sources of funding to underpin those commitments.

SSE's Net Zero Acceleration Programme has at its core a capex plan that is
fully fundable and deliverable. It enables 1.5 degree aligned science-based
targets as well as providing a platform for ambitious growth into the 2030s
and beyond, creating lasting value for shareholders and society during what
promises to be a pivotal period in the fight against climate change.

ENDS

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