Project Details
Project
RBC Canadian Core Real Estate Fund Green Bond Framework Second-Party Opinion (2024)
Client
Canadian Core Real Estate Fund LP
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Pollution prevention and control; Climate change adaptation; Clean transport;
Location
Canada
Evaluation Date
Aug 2024
Evaluation Summary
Sustainalytics is of the opinion that the RBC Canadian Core Real Estate Fund Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds Green Buildings, Renewable Energy, Resource and Energy Efficiency, Pollution Prevention and Control, Climate Change Adaptation, and Clean Transportation, are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 11 and 12.
PROJECT EVALUATION AND SELECTION
CCRE’s internal process for evaluating and selecting projects is managed by its Real Estate Investment Committee, working with the Corporate Governance & Responsible Investment group of RBC Global Asset Management (RBC GAM). The Real Estate Investment Committee is comprised of RBC GAM’s Chief Investment Officer and other senior members of its investment team. The selection process incorporates fund-level ESG risk analyses and is subject to the risk management tools and processes of CCREF’s investment team and those of its partner, QuadReal. Sustainalytics considers the risk management systems to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Net proceeds of all green bond issuances under the Framework will be deposited into CCRE’s general account, where they will be tracked by the Real Estate Investment Committee and made available to pre-identified eligible projects and assets. CCREF will allocate all proceeds within 24 months of each issuance. Unallocated proceeds within this period will be held in cash, short-term liquid instruments or used to repay outstanding debt. Sustainalytics considers the management process and allocation period to be in line with market practice.
REPORTING
CCRE will report on allocation of proceeds in a green bond report or as part of its green bond offering memorandums on an annual basis until full allocation. The green bond report will be made available upon request and will include details on relevant impact metrics. Sustainalytics views the allocation and impact reporting commitments as aligned with market practice.