Second-Party Opinion Download

Sustainalytics is of the opinion that the EdgeConneX 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 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds, Energy Efficiency, is aligned with those recognized by the Green Bond 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 EVALUATION / SELECTION

ECX’s internal process in evaluating and selecting projects is overseen by its Green Finance Committee comprised of representatives from ECX’s Board and the Sustainability team including the CEO, CFO, Global Sustainability Director, VP Corporate Finance and Corporate Finance Analyst. ECX’s environmental and social risk management processes are applicable for all allocation decisions in the Framework. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

ECX’s Green Finance Committee will track net outstanding proceeds and allocation to eligible green assets using an internal accounting process. ECX intends to reach full allocation within 36 months of any issuance. Unallocated proceeds will be held in cash, cash equivalents and/or U.S. government securities. This is in line with market practice. 

REPORTING

ECX intends to report on allocation of proceeds on an aggregated portfolio basis on an annual basis until full allocation. In addition, ECX is committed to reporting on relevant impact metrics. The reporting will be made publicly available on ECX’s website for green bonds and asset-backed securities and communicated directly with the investors for green loans. Sustainalytics views ECX’s allocation and impact reporting as aligned with market practice.