Project Details
Project
Equinix Green Finance Framework Second-Party Opinion
Client
Equinix, Inc.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the Equinix Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, Green Buildings, Renewable Energy, Energy Efficiency, Sustainable Water and Wastewater Management, Waste Management and Clean Transportation, are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically Goals 6, 7, 9, 11 and 12.
PROJECT EVALUATION/SELECTION
Equinix has formed a dedicated Green Finance Committee, comprised of representatives from the Company’s Sustainability Program Office, Legal, Treasury and Investor Relations teams, that is responsible for overseeing the project evaluation and selection process to ensure compliance with the Framework’s eligibility criteria. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Equinix’s Green Finance Committee will be responsible for allocating an amount equal to the proceeds from the Green Financing Instruments to an eligible green project portfolio. Pending full allocation, Equinix will hold or temporarily invest an amount equal to the unallocated balance of the proceeds in cash, cash equivalents and/or treasury securities. Equinix has defined a two-year look back period for Eligible Projects and intends to fully allocate in two-to-three years. Sustainalytics considers this to be in line with market practice.
REPORTING
Equinix is committed to reporting on the allocation and impact of its green proceeds on an annual basis, until full allocation. Allocation reporting will include the total amount of proceeds allocated to Eligible Projects as well as the balance of unallocated proceeds and the amount or percentage of new financing vs. refinancing, while impact reporting will draw on several environmental impact metrics, where feasible. Sustainalytics views Equinix’s allocation and impact reporting as aligned with market practice.