Project Details
Project
FAIR ALPHA Sustainable SA Green Finance Framework Second Party Opinion (2022)
Client
FAIR ALPHA
Project Type
Green Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Clean transport; Green buildings; Natural resources/land use management; Pollution prevention and control; Energy efficiency;
Location
Luxembourg
Evaluation Date
May 2022
Evaluation Summary
Sustainalytics is of the opinion that the FAIR ALPHA Sustainable SA 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 categories for the use of proceeds – Renewable Energy, Clean Transportation, Building Efficiency, Land Use & Marine Resources, Waste and Pollution Control, Information & Communications Technology and Transport Infrastructure & Accessibility – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11, 12, 15.
PROJECT EVALUATION / SELECTION
FAIR ALPHA’s Board of Directors will be responsible for overseeing the evaluation and selection process for all eligible projects under the Framework. The Board will also be responsible for the final approval of eligible projects. FAIR ALPHA has in place an environmental and social risk management system that is applicable to all allocation decisions in the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
FAIR ALPHA’s Board of Directors will be responsible for overseeing the management of proceeds. Allocation to eligible projects will be tracked through an internal system. FAIR ALPHA intends to allocate proceeds immediately after issuance. This is in line with market practice.
REPORTING
FAIR ALPHA intends to report on allocation of proceeds in its Sustainability Report on its website on an annual basis until full allocation. The report will include the number of issued compartments, the total amount of investments in eligible sustainable projects, a short description of the assets and projects financed and balance of unallocated proceeds. In addition, FAIR ALPHA is committed to reporting on relevant impact metrics. Sustainalytics views FAIR ALPHA’s allocation and impact reporting as aligned with market practice.