Project Details
Project
Energias de Portugal Green Finance Framework Second-Party Opinion (2023)
Client
Energias de Portugal SA
Project Type
Green Bond/Loan; EU Taxonomy Assessment;
Industry Group
Energy Services
Use of Proceeds
Renewable energy
Location
Portugal
Evaluation Date
Sep 2023
Evaluation Summary
Sustainalytics is of the opinion that the EDP 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 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 is expected to contribute to a positive environmental impact and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION AND SELECTION
Energias de Portugal’s Sustainable Finance Working Group will be responsible for selecting and evaluating eligible projects and assets. Energias de Portugal has processes in place to identify and manage common environmental and social risks associated with the eligible projects, which apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Energias de Portugal’s Sustainable Finance Working Group will oversee the processes for management of proceeds on a portfolio basis. Energias de Portugal intends to fully allocate the proceeds within 24 months of issuance. Pending full allocation, unallocated proceeds will be held in the treasury liquidity portfolio, including cash or cash equivalents or invested in reimbursement or purchase of existing debt. Energias de Portugal intends to label only those tranches whose proceeds will be allocated according to the eligible criteria of the EDP Green Finance Framework. This is in line with market practice.
REPORTING
Energias de Portugal commits to report on the allocation of proceeds on its website on an annual basis 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, Energias de Portugal commits to report on relevant impact metrics. Sustainalytics views Energias de Portugal’s allocation and impact reporting commitments as aligned with market practice.