Project Details
Project
Compass Datacenters Green Finance Framework Second-Party Opinion (2024)
Client
Compass Datacenters
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
Energy efficiency
Location
U.S.
Evaluation Date
Feb 2024
Evaluation Summary
Sustainalytics is of the opinion that the Compass Datacenters 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
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 EVALAUTION AND SELECTION
Compass’ Green Finance Committee will be responsible for the evaluation and selection of eligible projects based on the Framework. The Committee is also responsible for ensuring that Compass’ internal policies and procedures are followed to identify and manage environmental and social risks related to eligible projects. Sustainalytics considers the project selection process aligned with market practice.
MANAGEMENT OF PROCEEDS
Compass will track and manage the use of proceeds using an internal accounting system, which will be maintained by the Finance team. Compass has committed to allocating proceeds of eligible green financing instruments within 24 months of issuance. Any unallocated proceeds will be managed according to Compass’ liquidity management policy. This is aligned with market practice.
REPORTING
Compass commits to report on the allocation of proceeds on an annual basis until full allocation and to share this reporting with relevant lenders and investors. Allocation reporting will include the amounts allocated to the eligible category, a description of eligible green projects funded, the balance of proceeds outstanding and the share of financing versus refinancing. In addition, Compass is committed to reporting on relevant impact metrics where feasible. Sustainalytics views Compass’s allocation and impact reporting as aligned with market practice.