Project Details
Project
Auckland Council Sustainable Finance Framework Second-Party Opinion (2024)
Client
Auckland Council
Project Type
Sustainability Linked Bond or Note; Sustainability Linked Loan; Green Bond/Loan;
Industry Group
Sub-Sovereign
Use of Proceeds
Energy efficiency; Water/waste water management; Climate change adaptation; Green buildings; Renewable energy; Pollution prevention and control; Natural resources/land use management; Clean transport;
Location
New Zealand
Evaluation Date
Oct 2024
Evaluation Summary
Use of Proceeds Instruments
Green Bond Principles 2021 and Green Loan Principles 2023
Sustainalytics is of the opinion that the Auckland Council Sustainable Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and Green Loan Principles 2023. The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Green Buildings, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean Transportation, Climate Change Adaptation, Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles.
Sustainability-Linked Instruments
Sustainability-Linked Bond Principles 2024
Sustainability-Linked Loan Principles 2023
Sustainalytics is of the opinion that the Auckland Council Sustainable Finance Framework aligns with the Sustainability-Linked Bond Principles 2024 and Sustainability-Linked Loan Principles 2023.
| KPI | Strength of KPI | SPT | Ambitiousness of SPT |
KPI 1: Diverse procurement | Strong | SPTs 1.1 to 1.3: Increase the annual proportion of influenceable procurement spend with identified or confirmed Māori- or Pasifika-owned businesses or social enterprises to 5.50% by FY2025, 5.75% by FY2026 and 6.00% by FY2027 | Ambitious |
KPI 2: Transition of bus fleet | Adequate | SPTs 2.1 to 2.3: Increase the total number of operational low-emission buses to 220 by FY2025, 250 by FY2026 and 290 by FY2027 | Ambitious |
KPI 3: Emissions reduction | Strong | SPT 3.1: i) Ensure that Auckland Council’s GHG Emissions Reduction Plan and the SPTs for FY2026 and FY2027 are set; and ii) reduce Auckland Council’s absolute scope 1 and 2 GHG emissions to 24,616 tCO2e by FY2025 SPT 3.2: i) Ensure that Auckland Council’s GHG Emissions Reduction Plan and the SPTs for FY2027 remain in place; and ii) reduce Auckland Council’s absolute scope 1 and 2 GHG emissions to 23,826 tCO2e by FY2026 SPT 3.3: i) Ensure that Auckland Council's GHG Emissions Reduction Plan remains in place; and ii) reduce Auckland Council’s absolute scope 1 and 2 GHG emissions to 23,035 tCO2e by FY2027 | Highly Ambitious |
KPI 4: Native Ngahere (Forest) Restoration: Planting of Permanent Native Ngahere Stems in Auckland Council’s Regional Park Network | Adequate | By 30 June 2027, Plant at least 1,000,000 Permanent Native Ngahere Stems in Auckland Council’s Regional Network using Auckland Council Funding | Ambitious |