Second-Party Opinion Download

Sustainalytics is of the opinion that the ColCap Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that investments in the eligible category is expected to contribute to the decarbonization of Australia’s residential building stock and advance the UN Sustainable Development Goals, specifically SDG 11. 

PROJECT EVALUATION AND SELECTION

Columbus Capital’s Treasury team will be responsible for project evaluation in accordance with the eligibility criteria of the Framework. The Treasury Team is overseen by the ESG Bond Committee which comprises representatives from various departments, including Originations, Legal and Compliance, Treasury and Data, and is chaired by the chief operating officer. Columbus Capital has processes in place to identify and manage ESG risks associated with the eligible projects. Sustainalytics considers the risk management systems to be adequate and the project selection process to be in line with market practice.  

MANAGEMENT OF PROCEEDS

Columbus Capital’s Treasury team will be responsible for overseeing the management of proceeds. Columbus Capital will use its closed mortgage portfolios system to track and report the allocation of proceeds. At the time of issuance, net proceeds from the mortgage-backed securities will be allocated in full to finance or refinance eligible loans. Sustainalytics considers this process to be in line with market practice. 

REPORTING

Columbus Capital intends to report on the allocation and impact of proceeds on an annual basis in its green bond report on its website until full allocation. Allocation reporting will include the net proceeds of the green bonds issued under the Framework along with details on aggregate of green bond proceeds allocated against green mortgages. In addition, Columbus Capital is committed to reporting on relevant impact metrics. Sustainalytics views Columbus Capital’s allocation and impact reporting as aligned with market practice.