Second-Party Opinion Download

Sustainalytics is of the opinion that the CenterPoint Energy Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and Social Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency and Carbon Reduction, Green Buildings, Cleaner Transportation and Socio-Economic Advancement and Equity – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 8, 9, 10 and 11. 

PROJECT EVALUATION AND SELECTION

CenterPoint Energy’s internal process for evaluating and selecting projects is overseen by a cross-functional subcommittee, consisting of personnel from its Treasury, Investor Relations, Legal, Finance, Sustainability, Operations and Accounting teams. CenterPoint’s internal processes will be utilized to address environmental and social risks associated with financed projects. 

MANAGEMENT OF PROCEEDS

CenterPoint Energy’s Treasury Department will be responsible for the management of proceeds. Net proceeds of each eligible instruments are intended to be fully allocated within 24 months of issuance. Pending full allocation, net proceeds will be invested in cash, cash equivalents or other liquid marketable investments in line with CenterPoint Energy’s treasury management policies or used to repay outstanding indebtedness that has no association with carbon-intensive activities or assets. This is in line with market practice.

REPORTING

CenterPoint Energy intends to publish allocation and impact reports for each eligible instrument on its website on an annual basis until full allocation of proceeds. Each allocation report will include the outstanding balance of net proceeds, amount of net proceeds disbursed or allocated to eligible project category as defined in the Use of Proceeds section of the Framework, a list of eligible projects financed, subject to confidentially consideration, and the proportional disbursements or allocation of proceeds between existing projects and new projects. Additionally, CenterPoint Energy has committed to reporting on relevant impact metrics for each use of proceeds category. Sustainalytics views CenterPoint Energy’s allocation and impact reporting as aligned with market practice.