Project Details
Project
Deutsche Bank CMBS Green Bond Framework Second Party Opinion (2021)
Client
COMM 2022-HC Mortgage Trust
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings
Location
U.S.
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that Deutsche Bank CMBS Green Bond Framework is credible and impactful and aligns to 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. Sustainalytics considers that the Issuer’s financing of a certified green building will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.
PROJECT EVALUATION / SELECTION
Deutsche Bank Commercial Real Estate team’s securitization and distribution groups selected the Mortgage Loan to finance the Mortgaged Property based on the property’s sustainability features, including its achievement of LEED Platinum certification. Deutsche Bank’s processes to assess and manage environmental and social risks are applicable to all allocation decisions under the Framework. Based on the existing risk management mechanisms and the exclusive use of proceeds to purchase an asset to finance a pre-identified eligible property, Sustainalytics views this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds from the issuance will be used solely for the purchase of a mortgage loan to finance a single eligible property. Proceeds will be fully disbursed immediately after the issuance with no flexibility to re-allocate. This is in line with market practice.
REPORTING
Deutsche Mortgage & Asset Receiving Corporation has committed to allocation reporting by providing a description of the Mortgaged Property and details of its sustainability features including LEED Platinum certification, to its investors, through the initial offering document. Given the intent to immediately allocate the net proceeds to purchase the mortgage loan, Sustainalytics views the upfront reporting process to be aligned with market practice.