Project Details
Project
Brightline Green Bond Framework Second-Party Opinion
Client
Brightline Holdings LLC
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Nov 2019
Evaluation Summary
Sustainalytics is of the opinion that the Brightline’s Green Bond Framework is credible and impactful and aligns with the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers investments in clean transportation and green buildings to have positive environmental and social impacts and will help advance the UN Sustainable Development Goal (11) Sustainable cities and communities and (9) Industry, Innovation and Infrastructure.
PROJECT EVALUATION/SELECTION
Brightline’s internal process for evaluating and selecting projects is in line with market practice. Its Executive Leadership Team will be responsible for evaluating and screening projects in accordance with the criteria for use of proceeds described in the Green Bond Framework. That team will also ensure compliance with all applicable laws and regulations, as well as the Company’s internal policies and guidelines.
MANAGEMENT OF PROCEEDS
Brightline will maintain separate Green Bond Proceeds designated bank account(s) to manage the net proceeds from bonds issued under the Green Bond Framework. It will separately record and track the use of funds for qualifying expenditures on eligible projects. The lookback period under this Green Bond Framework is 24 months and any unallocated funds will be held in the form of cash and cash equivalents or permitted investments in high credit quality instruments in the Green Bond Proceeds designated bank and investment accounts. This is in line with market practice.
REPORTING
Brightline intends to publicly report on the allocation proceeds on an annual basis until full allocation. In addition, it is committed to providing an impact report which will provide information on various environmental metrics, such as GHG emissions avoided from roadways and list of buildings that receive third-party environmental certifications. Sustainalytics views Brightline’s allocation and impact reporting to be in alignment with market practice.