Project Details
Project
AirTrunk Green Financing Framework Second-party Opinion (2022)
Client
AirTrunk
Project Type
Green Bond/Loan
Industry Group
Technology Hardware
Use of Proceeds
Water/waste water management; Renewable energy; Green buildings;
Location
Australia
Evaluation Date
Aug 2022
Evaluation Summary
Sustainalytics is of the opinion that the AirTrunk Green Financing Framework is credible and impactful and aligns with the four core components of the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Data Centre, Renewable Energy and Water Efficiency – are aligned with those recognized by the Green Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to improve the sustainability of AirTrunk’s operations by reducing energy use and associated GHG emissions and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9 and 12.
PROJECT EVALUATION / SELECTION
AirTrunk’s Sustainability Committee, chaired by the Head of Risk and Sustainability, is responsible for evaluating and selecting eligible projects in line with the Framework’s eligibility criteria. AirTrunk has a dedicated environmental and social risk assessment and mitigation process which is applicable to all allocation decisions made under the Framework. Sustainalytics considers this risk assessment and mitigation process to be strong and to be aligned with market practices.
MANAGEMENT OF PROCEEDS
AirTrunk’s Sustainability Committee will monitor the management and allocation of proceeds. The Company intends to allocate all proceeds to eligible projects within 12 months of issuance. The loan will be a capex term loan, which will be drawn down upon submission of actual expenses verified by an independent third party. The unallocated proceeds will be held in accordance with internal liquidity measures. This is in line with market practice.
REPORTING
AirTrunk intends to report on the allocation of proceeds until full allocation in a separate certificate or report and will be available to respective lenders only. Allocation reporting will include a total net allocation to eligible green projects, percentage of financing versus refinancing, the projects being financed and the balance of unallocated proceeds. AirTrunk is also committed to reporting on relevant impact metrics, such as annual GHG emissions. Sustainalytics views AirTrunk’s allocation and impact reporting as aligned with market practice.