Second-Party Opinion Download

Sustainalytics is of the opinion that the ESB Green Bond Framework 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 categories for the use of proceeds – Renewable Energy, Electricity Networks, and Energy Efficiency – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.

PROJECT EVALUATION AND SELECTION

ESB’s Green Finance Committee will be responsible for evaluating and selecting projects and assets in line with the eligibility criteria. ESB has in place environmental risk management procedures to identify and manage social and environmental risks associated with the projects and assets financed under the Framework. These procedures are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market expectation.

MANAGEMENT OF PROCEEDS

ESB’s green finance committee will be responsible for the management of proceeds and will track the proceeds using an internal register. ESB intends to allocate all proceeds within 24 months of issuance. Any unallocated proceeds will be held temporarily in cash or cash equivalents. This is in line with market practice.

REPORTING

ESB commits to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds distributed per eligible category or per project, amount of proceeds refinanced or allocated to newly financed projects and amount of unallocated proceeds. ESB intends to report on relevant impact metrics. Sustainalytics views ESB’s allocation and impact reporting as aligned with market practice.

EU Taxonomy 

Sustainalytics has assessed the ESB Green Bond Framework for alignment with the EU Taxonomy. The three use of proceeds criteria of the Framework map to four activities in the EU Taxonomy. Sustainalytics is of the opinion that all the use of proceeds categories align with the applicable technical screening criteria for substantial contribution (SC) to the environmental objectives of the EU Taxonomy and applicable “do no significant harm” (DNSH) Criteria in the EU Taxonomy. 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.