Second-Party Opinion Download

Sustainalytics is of the opinion that the Caisse de dépôt et placement du Québec (“CDPQ”) Green Bond Framework is credible, impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following: 

USE OF PROCEEDS 

The eligible categories for the use of proceeds - Renewable Energy, Clean Transportation, Energy Efficiency, Pollution Prevention and Control, Sustainable Water and Wastewater Management and Forest, Agricultural Land and Land Management - are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG Goals 6, 7, 11, 12 and 15. 

PROJECT EVALUATION / SELECTION 

Caisse de dépôt et placement du Québec (“CDPQ”) has established a Green Bond working group to evaluate and select eligible investments. The working group is comprised of representatives from the climate risks and issues, investment stewardship, treasury, asset management, legal affairs and public affairs teams. CDPQ’s Liquidity and Funding Management Committee will be responsible for final approval. Sustainalytics considers the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS 

CDPQ’s treasury department will be responsible for maintaining a Green Bond Register and will allocate an amount equivalent to the Green Bond net proceeds to eligible investments. The register will be reviewed annually by the Green Bond working group, and pending allocation, unallocated proceeds may be temporarily invested in high quality liquid assets in the form of government bonds, money market securities and/or cash. CDPQ intends to allocate within 12 months of issuance. This is in line with market practice.

REPORTING 

CDPQ has committed to issuing an annual Green Bond report until full allocation. The report will include the allocation of net proceeds in aggregate and at the category level, the share of financing versus refinance and the amount of unallocated proceeds, if applicable. In addition, CDPQ is committed to reporting on relevant impact metrics, where feasible. Sustainalytics views CDPQ’s allocation and impact reporting as aligned with market practice.