Project Details
Project
CPI Property Group Sustainability Finance Framework Second Party Opinion (2022)
Client
CPI Property Group
Project Type
Green Bond/Loan; Sustainability Linked Bond or Note;
Industry Group
-
Use of Proceeds
-
Location
Luxembourg
Evaluation Date
Jan 2022
Evaluation Summary
Use of Proceeds Instruments
Green Bond Principles 2021
Sustainalytics is of the opinion that the CPI Property Group Sustainability Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 (the "Use of Proceeds Principles"). The eligible categories for the use of proceeds - Green Buildings, Energy Efficiency, Renewable Energy, and Environmentally Sustainable Management of Living Natural Resources and Land Use - are aligned with those recognized by the Use of Proceeds Principles and will lead to positive environmental impacts.
Sustainability-Linked Instruments
Sustainability-Linked Bond Principles 2020
Sustainalytics is of the opinion that the CPI Property Group Sustainability Finance Framework aligns with the Sustainability-Linked Bond Principles 2020. Overview of the KPI and SPTs:
Selection of Key Performance Indicator (KPI)
Sustainalytics overall considers the KPI to be very strong given that: (i) it directly measures performance on a relevant and material ESG issue for the Company, applicable to its total GHG emissions (Scope 1, 2 and 3), (ii) its definition is aligned with credible external methodologies such as IEA B2DS scenario, and therefore, (iii) supports benchmarking against external emission reduction trajectories.
Calibration of Sustainability Performance Targets (SPTs)
Sustainalytics considers the SPTs to align with Issuer's sustainability strategy and to be ambitious given that: (i) they align with peers best practice, and (ii) they present an emissions intensity reduction in line with a well-below 2°C scenario.
Bond Characteristics
Sustainalytics positively notes that the SPTs need to be met at the evaluation date to avoid an increase in the coupon margin and that the bond characteristics are aligned with market practice; however, it does not opine on the adequacy of the penalty imposed for not achieving the SPTs
Reporting
CPIPG commits to report on an annual basis on its performance on the KPI, and expects to include the relevant figures in its annual Management Report, published on CPIPG’s website, which is aligned with the SLBP. CPIPG further commits to disclose relevant information that enables investors to monitor the level of ambition of the SPTs. Furthermore, CPIPG commits to report any potential events, such as material acquisitions or divestitures, that can substantially impact the calculation of the KPI, and may require the restatement of the SPTs or pro-forma adjustments of baselines or KPI scope.
Verification
CPIPG commits to having an external verifier provide assurance on the published KPI performance figures for each fiscal year/on the KPI performance at the SPT deadline, which is aligned with the SLBP on verification.