Project Details
Project
AMH Green Finance Framework Second-Party Opinion (2023)
Client
AMH
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Water/waste water management; Renewable energy; Clean transport;
Location
U.S.
Evaluation Date
Dec 2023
Evaluation Summary
Sustainalytics is of the opinion that the AMH Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, Green Buildings, Sustainable Water and Wastewater Management, Renewable Energy and Clean Transportation, 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 SDG 6, 7, 9 and 11.
PROJECT SELECTION AND EVALUATION
AMH’s Green Finance Committee, consisting of representatives from the Sustainability, Finance, Development, Operations and Legal teams, will be responsible for evaluating and selecting eligible projects in accordance with the Framework’s eligibility criteria. The Committee will review eligible projects in line with the Company’s policies and procedures to address environmental and social risks associated with the projects being financed. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
AMH’s Finance team, along with the Sustainability and Development teams, will oversee the management and allocation of proceeds using an internal management reporting process. AMH intends to allocate proceeds within 36 months of the respective issuance date. Pending full allocation, proceeds will be temporarily invested in accordance with the Company’s cash investment policy or to repay outstanding indebtedness. This is in line with market practice.
REPORTING
AMH intends to report on the allocation of proceeds in a Green Finance Report, which will be published on its website on an annual basis until full allocation. For revolving credit facilities, Sustainalytics notes that AMH will continue to report on such facilities until maturity. In addition, AMH intends to report on relevant impact metrics. Sustainalytics views AMH’s reporting commitments as aligned with market practice.