Project Details
Project
FS Green Bond Framework Second Party Opinion (2021)
Client
FS Agrisolutions Indústria de Biocombustíveis Ltda
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
Sustainable agriculture; Sustainable forestry; Renewable energy;
Location
Brazil
Evaluation Date
Aug 2021
Evaluation Summary
Sustainalytics is of the opinion that the FS 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 – Bioenergy and Sustainable Forestry – 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 SDGs 7 and 15.
PROJECT EVALUATION AND SELECTION
FS’s sustainability department is responsible for the selection and approval of the eligible projects. The Framework defines environmental and social risk management processes that are applicable to all eligible categories. Sustainalytics considers the project selection and risk management processes in line with market practice.
MANAGEMENT OF PROCEEDS
FS will monitor and track internally the proceeds from each issuance, which will be fully allocated within 12 months from their respective issuance. Pending allocation, the funds will be 100% invested in low-risk commitments or used to repay outstanding debt. This is in line with market practice.
REPORTING
FS intends to report on allocation of proceeds on its website on an annual basis until full allocation. In addition, FS is committed to reporting on relevant impact metrics. Sustainalytics views FS’s allocation and impact reporting as aligned with market practice.