City of Atlanta Social Bond Framework Second-Party Opinion (2022)
City of Atlanta
Use of Proceeds
Socio-economic advancement; Affordable basic infrastructure; Access to essential services;
Sustainalytics is of the opinion that the City of Atlanta Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, Affordable Basic Infrastructure, Access to Essential Services and Socio-economic Advancement and Empowerment are aligned with those recognized by the Social Bond Principles, which seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible categories are expected to lead to positive social impact and advance the UN Sustainable Development Goals, specifically SDGs 10 and 11.
PROJECT EVALUATION / SELECTION
The City of Atlanta’s internal process for evaluating and selecting projects is overseen by the City of Atlanta’s Council in coordination with the Office of Sustainability and Resiliency and the operating departments. The City of Atlanta has adopted internal policies and processes to address environmental and social risks associated with the projects financed. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The City of Atlanta’s Office of Treasury, Debt and Investments will oversee the management and allocation of proceeds to eligible projects. The City of Atlanta intends to fully allocate proceeds within five years of the issuance. Pending full allocation, net proceeds will be temporarily held in permitted investments defined in the Framework. This is in line with market practice.
The City of Atlanta intends to report on allocation of proceeds on its investor relations website on an annual basis until full allocation. The 2022A-1 Social Bond Report will include disclosures on the net proceeds generated from social financing and on the proceeds allocated to each eligible social project. In addition, the City of Atlanta’s 2022A-1 Social Bond Report will include certain social impact metrics. Sustainalytics views the City of Atlanta’s allocation and impact reporting as aligned with market practice.