Second-Party Opinion Download

Sustainalytics is of the opinion that the CloudHQ-Cloud Capital Green Finance 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 category for the use of proceeds, Energy and Resource Efficiency, is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7. 

PROJECT EVALUATION AND SELECTION

CloudHQ and Cloud Capital’s executive team will be responsible for evaluating and selecting the projects in accordance with the Framework’s eligibility criteria. The executive team will take inputs from the finance, accounting, legal, development, sustainability, EHS, HR and operations teams during the selection process. The executive team will also be responsible for assessing environmental and social risks associated with the eligible green assets being financed and determining mitigating measures, where appropriate. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

CloudHQ and Cloud Capital’s executive team will be responsible for the allocation and management of net proceeds and will track the proceeds through an internal accounting system. All proceeds will be allocated within 36 months of each issuance or loan disbursement under the Framework. Pending full allocation, proceeds will be held or invested in line with CloudHQ’s liquidity management policy. This is in line with market practice. 

REPORTING

CloudHQ and Cloud Capital will report on the allocation of proceeds for all financial instruments until their maturity date. Additionally, CloudHQ and Cloud Capital also commit to report on relevant impact metrics for all eligible green assets where the tenant of the facility does not assume exclusive operational control of it. Sustainalytics views the commitment to allocation and impact reporting as aligned with market practice.