Project Details
Project
CyrusOne Green Finance Framework Second-Party Opinion (2023)
Client
CyrusOne
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Energy efficiency; Green buildings; Renewable energy; Water/waste water management; Clean transport;
Location
U.S.
Evaluation Date
Mar 2023
Evaluation Summary
Sustainalytics is of the opinion that the CyrusOne 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
The eligible categories for the use of proceeds –Energy Efficiency, Green Buildings, Renewable Energy, Sustainable Water and Wastewater Management and Clean Transportation – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9 and 11.
PROJECT EVALUATION AND SELECTION
CyrusOne’s Green Finance Committee will evaluate, select and monitor eligible assets against the eligibility criteria. CyrusOne’s environmental and social risk assessment process is applicable to all allocation decisions. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
CyrusOne’s Green Finance Committee will be responsible for the management and allocation of proceeds to eligible assets and will track the proceeds through an internal accounting system. CyrusOne intends to reach full allocation of proceeds within 36 months of issuance. Pending allocation, unallocated proceeds will be temporarily held or invested in accordance with CyrusOne’s cash investment policy or used to repay outstanding debt. This is in line with market practice.
REPORTING
CyrusOne intends to report on the allocation of proceeds and corresponding impact on its sustainability website on an annual basis until full allocation. Allocation reporting will include the amount of proceeds allocated to each eligible green project, the list of eligible projects funded, the balance of unallocated proceeds and the proportion of financing versus refinancing. In addition, CyrusOne is committed to reporting on relevant impact metrics. Sustainalytics views CyrusOne’s allocation and impact reporting commitments as aligned with market practice.