Project Details
Project
City of Helsingborg Sustainability Bond Framework Second-Party Opinion (2022)
Client
City of Helsingborg
Project Type
Sustainability Bond/Loan
Industry Group
Sub-Sovereign
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Clean transport; Pollution prevention and control; Water/waste water management; Natural resources/land use management; Access to essential services;
Location
Sweden
Evaluation Date
Sep 2022
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, Pollution Prevention & Control, Sustainable Water and Wastewater Management, Environmentally sustainable management of living natural resources and land use, and Access to Essential Services – are aligned with those recognized by the Green Bond Principles and Social Bond 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 4, 6, 7, 9, 11 and 15.
PROJECT EVALUATION AND SELECTION
The City of Helsingborg’s internal process for evaluating and selecting projects is managed by the Sustainable Finance Committee, comprising representatives from Treasury and Sustainability Department. Considering the presence of a governance structure with representation from crossdivisional participation and adequate regulations and plans for environmental and social risk mitigation in place, Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The City of Helsingborg’s process for management of proceeds is managed by the Treasury department. The Treasury will be responsible for overseeing the allocation and tracking of proceeds to eligible projects. Sustainalytics considers market expectation to reach full allocation within 36 months, and notes that the City of Helsingborg intends to allocate as soon as feasible within the lifetime of the bond. Pending allocation, unallocated proceeds will be held in cash or cash equivalents. This is in line with market practice.
REPORTING
The City of Helsingborg intends to report on allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include allocated amount, proportion of spending by eligible project category, share of financing versus refinancing, a selection of project examples and list of eligible projects Sustainalytics views the City of Helsingborg’s allocation and impact reporting as aligned with market practice.