Second-Party Opinion Download

Sustainalytics is of the opinion that the Centersquare Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Renewable Energy and Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7 and 11. 

PROJECT EVALUATION AND SELECTION

Centersquare will establish a Green Financing Committee to oversee the evaluation and selection of projects. The Committee consists of members from the sustainability, legal, finance, marketing and operations teams. The Company has confirmed to Sustainalytics that it has a process in place to address environmental and social risks associated with the projects financed. Sustainalytics considers the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Centersquare’s finance department will oversee the management and allocation of proceeds. Net proceeds will be tracked using an internal tracking system. Centersquare intends to allocate net proceeds within 36 months of each issuance. Pending full allocation, net proceeds will be used to repay debt or temporarily held in cash, cash equivalents and US government securities in accordance with Centersquare’s treasury management policies. This is in line with market practice. 

REPORTING

Centersquare will report on the allocation and impact of proceeds in a consolidated report which will be published on its website on an annual basis until full allocation. When not made publicly available, the report will be shared directly with investors and lenders. Allocation reporting will include the amounts allocated to projects subject to confidentiality agreements, a list of eligible project categories, share of financing and refinancing, as well as unallocated proceeds. Sustainalytics views Centersquare’s allocation and impact reporting as aligned with market practice.