Project Details
Project
CADU Green Bond Framework Second-Party Opinion
Client
Corpovael S.A.B. de C.V.
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
N/A
Location
Mexico
Evaluation Date
Mar 2020
Evaluation Summary
Sustainalytics is of the opinion that the CADU Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. 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 2018. Sustainalytics considers that the eligible category will lead to positive environmental impacts by promoting the development of energy efficient homes in Mexico and advance the UN Sustainable Development Goals, specifically SDG 11: Sustainable Cities and Communities.
PROJECT EVALUATION/SELECTION
CADU has established a Sustainability Committee that will oversee project selection, and verification of compliance with the Framework’s criteria. Current membership of the Sustainability Committee consists of two Company executives and two independent members with sustainability expertise. Sustainalytics considers CADU’s internal process in project selection to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Sustainability Committee will be responsible for tracking milestones and reporting on the balance and allocations on a quarterly and annual basis. Bond proceeds will be placed in a separate bank account. CADU’s processes for management of proceeds is in line with market practice.
REPORTING
CADU will provide quarterly and annual reports on the use of proceeds on its website and until full allocation. In addition, CADU is committed to reporting on relevant impact metrics that have been identified in the Framework. Sustainalytics views CADU’s allocation and impact reporting as aligned with market practice.