Second-Party Opinion Download

Sustainalytics is of the opinion that the EDP Green Finance Framework is credible and impactful and aligns to 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, Renewable Energy, is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7. 

PROJECT EVALUATION / SELECTION

Energias de Portugal’s Sustainable Finance Working Group oversees selecting and evaluating eligible assets. Financed projects are subject to ESG standards defined within EDP’s Environmental and Social Policies. EDP’s environmental and social policies and risk assessment processes are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

Energias de Portugal’s processes for management of proceeds are overseen by its Treasury team. Proceeds will be managed on a portfolio basis. EDP expects to reach full allocation 24 months after issuance. Pending full allocation, unallocated proceeds will be held in EDP’s treasury liquidity portfolio including cash or cash equivalents or invested in reimbursement/purchase of existing debt. This is in line with market practice. 

REPORTING

Energias de Portugal intends to report annually on allocation of proceeds on its website, until full allocation or in case of any material changes. Allocation reporting will include information such as an overview of the portfolio by asset type and total amount of assets. In addition, EDP is committed to reporting on relevant impact metrics, such as installed renewable energy capacity (MW) and annual CO2 emissions avoided (tCO2). Sustainalytics views EDP’s allocation and impact reporting as aligned with market practice.

Alignment with the EU Taxonomy  

Sustainalytics has assessed Energias de Portugal’s Green Finance Framework for alignment with the EU Taxonomy, and is of the opinion that, of the Framework’s two eligibility criteria (which map to two EU activities), both align with the applicable Technical Screening Criteria (“TSC”) in the EU Taxonomy and partially align with the Do No Significant Harm (“DNSH”) Criteria. No categories were determined to be not aligned. Sustainalytics is also of the opinion that the activities and projects to be financed under the Framework will be carried out in alignment with the EU Taxonomy’s Minimum Safeguards.