Project Details
Project
Choice Properties REIT Green Finance Framework Second-Party Opinion (2021)
Client
Choice Properties REIT
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Energy efficiency; Water/waste water management; Clean transport; Renewable energy; Pollution prevention and control; Climate change adaptation;
Location
Canada
Evaluation Date
Nov 2021
Evaluation Summary
Sustainalytics is of the opinion that the Choice Properties REIT 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 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Sustainable Water and Wastewater Management, Clean Transportation, Renewable Energy, Pollution Prevention and Control, Biodiversity and Conservation, and Adaptability and Resilience to Climate Change – 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, 9, 11, 12, 13 and 15.
PROJECT EVALUATION / SELECTION
Choice Properties REIT’s (“Choice” or the “Company”) Green Financing Committee along with members of the Sustainability, Treasury, Development, Asset Management and Legal departments will identify eligible projects. This committee reports to the Company’s ESG Steering Committee that is responsible for final sign-off on eligible projects. The Company’s environmental and social risk management processes are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Net proceeds will be deposited and earmarked for allocation within Choice's general accounts by the Finance department. Choice intends to fully allocate within 36 months of each issuance, pending which the net proceeds will be held in cash, short-term deposits, or other instruments, or used to repay existing debt. This is in line with market practice.
REPORTING
Choice intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include information such as the amount allocated to eligible green projects as well as the percentage of proceeds allocated towards refinancing. In addition, Choice is committed to reporting on relevant qualitative and quantitative impact metrics. Sustainalytics views Choice’s allocation and impact reporting as aligned with market practice.