Project Details
Project
Aldar Properties PJSC Green Finance Framework Second-Party Opinion (2023)
Client
Aldar Properties PJSC
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Energy efficiency; Water/waste water management; Pollution prevention and control; Renewable energy;
Location
United Arab Emirates (UAE)
Evaluation Date
May 2023
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Sustainable Water Management, Pollution Prevention and Control, and Renewable Energy – are aligned with those recognized by the Green Bond Principles 2021 and the Green Loan Principles 2023. Sustainalytics considers that investments in the eligible categories may contribute to a positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9 and 12.
PROJECT EVALUATION AND SELECTION
Aldar’s Sustainability Council will be responsible for governing, evaluating, selecting and implementing projects in line with the Framework’s eligibility criteria. Aldar uses an internal ESG risk register to assess ESG risks associated with eligible projects and assets. Aldar also conducts environmental impact assessments for eligible projects to manage and mitigate potential risks. Sustainalytics considers the project evaluation and selection process and risk management systems in place to be in line with market practice.
MANAGEMENT OF PROCEEDS
Aldar’s Treasury Team will be responsible for the overall management of proceeds. Aldar will use a Green Finance Register to track the allocation of proceeds. Aldar intends to allocate net proceeds within 24 months of issuance. Pending full allocation, unallocated proceeds will be temporarily invested in cash and cash equivalents according to Aldar’s standard liquidity policy. Sustainalytics considers this process to be in line with market practice.
REPORTING
Aldar commits to report on the allocation of proceeds and corresponding impact on an annual basis until full allocation. The allocation and impact report will be published on Aldar’s website. Allocation reporting will include a list of eligible green projects, the amount of proceeds allocated per category, the balance of unallocated proceeds, the share of financing versus refinancing, examples of projects financed and, where possible, a description of eligible green projects financed. Sustainalytics views Aldar’s allocation and impact reporting as aligned with market practice.