Project Details
Project
FibraShop Green Bond Framework Second-Party Opinion (2021)
Client
FibraShop
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Clean transport; Natural resources/land use management; Climate change adaptation; Water/waste water management;
Location
Mexico
Evaluation Date
Jun 2021
Evaluation Summary
Sustainalytics is of the opinion that the FibraShop Green Bond Framework is credible and impactful and aligns to 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 – Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, Living Natural Resources and Land Use, Climate Change Adaptation, and Efficient and Climate Resilient Water Management – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 9, 11, 13 and 15.
PROJECT EVALUATION / SELECTION
FibraShop’s Sustainability Committee, comprised of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, the Sustainability Manager and an independent member, will be in charge of evaluating and selecting eligible projects. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
FibraShop will deposit bond proceeds to a sub-account, and the Sustainability Committee will be responsible for overseeing the management of proceeds. Unallocated proceeds will be held in cash, cash equivalents, or investment instruments that do not include greenhouse gas (GHG) intensive projects, or to temporarily refinance corporate debt. FibraShop commits to fully allocate proceeds within 12 months of issuance. This is in line with market practice.
REPORTING
FibraShop intends to annually report on the allocation of proceeds on its website and until full allocation. Allocation reporting will include the list of projects financed, the amount of proceeds allocated to eligible green projects, and the balance of unallocated proceeds. In addition, FibraShop is committed to reporting on relevant impact metrics, including GHG emissions avoided, water saved, and green certifications achieved. Sustainalytics views FibraShop’s allocation and impact reporting as aligned with market practice.