Second-Party Opinion Download

Sustainalytics is of the opinion that the Örebro Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds - Green and Energy Efficient Buildings, Energy Efficiency, Renewable Energy, Clean Transportation, Water and Wastewater Management, Pollution Prevention and Control, Climate Change Adaptation and Terrestrial and Aquatic Biodiversity – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12, 13, 14 and 15. 

PROJECT EVALUATION AND SELECTION

Various departments at Örebro Municipality will be responsible for the project evaluation and selection process in accordance with the eligibility criteria of the Framework. Örebro Municipality has adopted internal guidelines and processes, and relies on the compliance with applicable national regulations to manage environmental and social risks associated with eligible projects. Sustainalytics considers the project selection process and the risk management system to be in line with market practice.

MANAGEMENT OF PROCEEDS

Örebro Municipality’s Department of Treasury will be responsible for the allocation and tracking of proceeds using a green register. Örebro Municipality intends to allocate proceeds to eligible projects within one year of issuance. Pending full allocation, proceeds will be temporarily placed in the municipality’s liquidity reserve and be managed in line with Örebro Municipality’s financial policy. This is in line with market practice.

REPORTING

Örebro Municipality commits to report on the allocation of proceeds and corresponding impact through an annual investor letter that will be made available to the public. Allocation and impact reporting may include details such as the nominal amount of outstanding green bonds, the relative share of new financing versus refinancing, descriptions of selected green projects financed and the balance of unallocated proceeds. Sustainalytics views Örebro Municipality’s allocation and impact reporting as aligned with market practice.