Project Details
Project
Bloom Energy Green Financing Framework Second-Party Opinion (2023)
Client
Bloom Energy Corporation
Project Type
Green Bond/Loan
Industry Group
Electrical Equipment
Use of Proceeds
Renewable energy; Energy efficiency; Climate change adaptation; Water/waste water management; Pollution prevention and control; Green buildings; Clean transport;
Location
U.S.
Evaluation Date
Jun 2023
Evaluation Summary
Sustainalytics is of the opinion that the Bloom Energy Green Financing Framework is credible and impactful and aligned with the Green Bond Principles 2021 and Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Climate Change Adaptation, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Green Buildings, and Clean and Mass Transportation – are aligned with those recognized by the Green Bond Principles and Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts, while noting one area of deviation from science-based trajectories (in the Renewable Energy category), and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
Bloom Energy’s Sustainability Team will be in charge of project evaluation, with final approval jointly provided by the Treasurer and Chief Financial Officer of the Company. Bloom Energy’s ESG Committee and Enterprise Risk Management programme will identify and evaluate environmental and social risks for all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Bloom Energy has internal tracking systems in place to monitor proceeds. Pending allocation, funds will be temporarily held in liquid assets such as cash, cash equivalents and other liquid securities in line with the Company’s investment policy. This is in line with market practice. Sustainalytics considers market practice to allocate net proceeds within 36 months of issuance and notes that Bloom may allocate proceeds up until the maturity of the notes.
REPORTING
Bloom Energy commits to report on the allocation of proceeds and corresponding impact, to the extent feasible, on an annual basis until full allocation publicly on its website. Allocation reporting will include the total amount of proceeds allocated, the balance of unallocated proceeds and the proportion of financing versus refinancing. In addition, Bloom Energy is committed to reporting on relevant impact metrics. Sustainalytics views Bloom’s allocation and impact reporting as aligned with market practice.