Project Details
Project
Allied Green Financing Framework Second-Party Opinion (2025)
Client
Allied Properties REIT
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Energy efficiency; Natural resources/land use management; Clean transport; Renewable energy; Water/waste water management; Climate change adaptation; Circular economy adapted products, production technologies and processes;
Location
Canada
Evaluation Date
May 2025
Evaluation Summary
Sustainalytics is of the opinion that the Allied Green Financing Framework is credible, impactful and aligned with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2025. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Net Zero Carbon (NZC) Transition Projects, Resource Efficiency and Management, Clean Transportation, Renewable Energy, Sustainable Water and Wastewater Management, Climate Adaptation and Resilience, and Circular Economy Adapted Products – are aligned with those recognized by the Green Bond Principles and the Green Loan 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 and 12.
PROJECT EVALUATION AND SELECTION
Allied Properties Real Estate Investment Trust (“Allied”)’s Green Financing Working Committee, comprised of members with varying functional expertise, will oversee the implementation of the Framework and be responsible for identifying projects that meet the eligibility criteria defined in the Framework. The committee will also be responsible for assessing environmental and social risks associated with the financed projects in accordance with Allied’s annual risk management assessment process. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Allied’s net proceeds from the issuance of the green financing instruments will be deposited to Allied’s general account and earmarked for allocation to eligible projects. Allied intends to fully allocate net proceeds within 36 months of issuance. Until fully allocated to credible projects, net proceeds may be used to repay Allied’s debt, held in cash or cash equivalents, or used for general trust purposes. This is in line with market practice.
REPORTING
Allied commits to report on the allocation of proceeds and corresponding impacts, on an annual basis until full allocation, in its Annual Report or ESG Report, which will be publicly available on its website. Allocation reporting will include details regarding the eligible green projects, the amount allocated to each project and the balance of unallocated net proceeds. In addition, Allied intends to report on relevant impact metrics. Sustainalytics views Allied’s allocation and impact reporting as aligned with market practice.