Project Details
Project
City of Ottawa Sustainable Debenture Framework Second-Party Opinion (2024)
Client
City of Ottawa
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Clean transport; Water/waste water management; Natural resources/land use management; Climate change adaptation; Green buildings; Affordable basic infrastructure; Access to essential services; Affordable housing; Socio-economic advancement;
Location
Canada
Evaluation Date
Feb 2024
Evaluation Summary
Sustainalytics is of the opinion that the City of Ottawa Sustainable Debenture Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories1 for the use of proceeds are aligned with those recognized by both 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 3, 4, 6, 7, 8, 9, 11, 12, 13 and 15.
PROJECT EVALUATION AND SELECTION
The City of Ottawa’s Finance and Corporate Services Department will be responsible for evaluating and selecting projects in accordance with the eligibility criteria outlined in the Framework. The department is also responsible for identifying and managing environmental and social risks associated the projects financed and for ensuring compliance with all applicable laws and regulations as well as the City of Ottawa’s policies. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The City of Ottawa’s Treasury department, in collaboration with the operating departments, will oversee the allocation and tracking of proceeds, in accordance with a Schedule A to the Debenture By-Law, using an internal tracking system. The City of Ottawa intends to fully allocate net proceeds immediately following each issuance under the Framework. This is in line with market practice.
REPORTING
The City of Ottawa will report on the allocation and impact of proceeds in the City’s annual information report, which will be published on its website on an annual basis. Allocation reporting will include funds raised from each green, social, or sustainability bond, an overview of the allocated funds to each eligible project categories, an amount of unallocated proceeds, debenture by-laws with accompanying schedule A outlining the specific projects funded by the debenture, a summary of the City’s sustainable debenture of unspent debenture proceeds, project updates and status reports for eligible projects when possible. The City of Ottawa intends to report on relevant key performance indicators. Sustainalytics views the reporting commitments to be in line with market practice.