Second-Party Opinion Download

Sustainalytics is of the opinion that the Digital Realty Green Finance Framework – DC 2023-DC CMBS is credible and impactful and aligns with 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, Energy and Resource Efficiency, is aligned with those recognized by the Green Bond 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 EVALUATION AND SELECTION

The eligible projects were selected by Digital Realty’s sustainability team and approved by its senior management team that includes the Chief Financial Officer, General Counsel and others.  Digital Realty’s company-level processes to manage and mitigate environmental and social risks are applicable to the allocation decisions made under the Framework. Sustainalytics views this to be aligned with market practice. 

MANAGEMENT OF PROCEEDS

The proceeds from the issuance will be exclusively used to purchase a whole loan to finance the recapitalization of the ownership structure of the Mortgaged Properties. Proceeds will be immediately allocated after the issuance with no flexibility to re-allocate. This is in line with market practice.

REPORTING

Citigroup Commercial Mortgage Securities Inc., the Depositor, intends to provide investors with a description of the Mortgaged Properties and the details of its sustainability features, including the PUE ratios of less than 1.4, as part of the initial offering document. Given the intent to immediately allocate the proceeds to purchase the whole loan and recapitalize the ownership structure of the eligible assets, Sustainalytics views Digital Realty Trust, Inc.’s allocation and impact reporting as aligned with market practice.