Second-Party Opinion Download

Sustainalytics is of the opinion that the Amara NZero Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy and Energy Efficiency – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to a positive environmental impact and advance the UN Sustainable Development Goals, specifically SDG 7. 

PROJECT EVALUATION AND SELECTION

Amara NZero’s Green Bond Committee will evaluate, select and monitor eligible assets according to the eligibility criteria. The committee is a sub-set of Amara NZero’s Sustainability Committee and includes C-level representatives, including the CEO, CFO, CTO and the chief sustainability officer. Amara’s ESG criteria, which include risk identification, apply to all allocation decisions made under the Amara NZero Green Bond Framework. Sustainalytics considers this risk management system and project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Amara NZero’s Treasury and Analysis and Controlling departments will allocate and track net proceeds from issuances made under the Amara Nzero Green Bond Framework. Amara NZero intends to fully allocate proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily held or invested in cash or liquid instruments. This is in line with market practice.

REPORTING

Amara NZero intends to report on the allocation of proceeds and the corresponding impact on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to the eligible assets, a description of the assets to which proceeds are allocated and their geographic location, the share of financed versus refinanced assets and the balance of unallocated proceeds. In addition, Amara NZero commits to report on relevant impact metrics. Sustainalytics views Amara NZero’s allocation and impact reporting as aligned with market practice.