Project Details
Project
AC Energy Green Bond Framework Second-Party Opinion
Client
AC Energy
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Philippines
Evaluation Date
Jan 2019
Evaluation Summary
Sustainalytics is of the opinion that the AC Energy Green Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – Renewable Energy Projects - is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the solar energy projects, the wind (onshore and offshore) energy projects and the geothermal energy projects will contribute to reduce total GHG emissions by increasing the renewable energy output in countries where AC Energy operates. Sustainalytics views that AC Energy’s eligible projects will also advance the UN Sustainable Development Goal 7.
PROJECT EVALUATION/SELECTION
AC Energy’s project evaluation and selection is executed by the joint-collaboration of representatives from AC Energy’s Business Development, Finance and Sustainability Teams. AC Energy’s Board of Directors and Senior Management is responsible for the validation and approval of the shortlisted projects. This process is aligned with market practices.
MANAGEMENT OF PROCEEDS
Proceeds of the green bond will be registered separately and tracked internally through AC Energy’s information systems. Pending full allocation, the unallocated green bond proceeds will be invested in cash or cash equivalents or used to repay existing credit obligations of the AC Energy Group according to AC Energy’s own internal liquidity management policies and may be transferred to other entities within the AC Energy Group. Sustainalytics views this process in line with market practice.
REPORTING
AC Energy will provide an annual allocation report comprising a list of Eligible Green Projects, including allocated amounts and the remaining balance of unallocated proceeds. Where possible, case studies may be added within the report. With regards to the impact report, AC Energy commits on a best effort basis to disclose data on KPIs such as the energy generated from renewable sources in (kWh) and the greenhouse gas emissions reduced or avoided (in tonnes of CO2e) on a portfolio basis. Sustainalytics views AC Energy’s reporting practices as aligned with market practices and encourages the company to report annually on impact indicators.