Alphabet Sustainability Bond Framework Second-Party Opinion
Use of Proceeds
Sustainalytics is of the opinion that the Alphabet Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds Energy Efficiency, Clean Energy, Green Buildings, Clean Transportation, Circular Economy and Design, Affordable Housing, Commitment to Racial Equity, Support for Small Businesses and COVID-19 Crisis Response, are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 3, 4, 7, 8, 10, 11, 12, and 15.
Alphabet Inc. has formed an internal committee with representatives from different departments for evaluating and selecting projects and the final approval responsibility is entrusted with the Google Sustainability Officer. Sustainalytics considers the project selection process to be aligned with market practice.
MANAGEMENT OF PROCEEDS
Alphabet will rely on its internal tracking systems managed by the Finance department and invest net proceeds in liquid securities such as cash, equivalents, and US Government securities pending allocation. This is in line with market practice.
Alphabet Inc. intends to report allocation proceeds on its website on an annual basis until full allocation. The report will include allocations made towards Eligible Projects on a category basis and, where feasible, on a project basis. In addition, Alphabet Inc. is committed to reporting on relevant impact metrics. Sustainalytics views Alphabet Inc.’s allocation and impact reporting as aligned with market practice.