Project Details
Project
Generate Capital PBC Green Financing Framework Second Party Opinion (2022)
Client
Generate Capital PBC
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Clean transport; Water/waste water management; Natural resources/land use management; Green buildings;
Location
U.S.
Evaluation Date
Apr 2022
Evaluation Summary
Sustainalytics is of the opinion that the Generate Capital PBC Green Financing 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, Energy Efficiency, Pollution Prevention & Control, Clean Transportation, Sustainable Water and Wastewater Management, Environmentally Sustainable Management of Living Natural Resources & Land Use, and Green Buildings – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11 and 12.
PROJECT EVALUATION / SELECTION
Generate’s internal process for evaluating and selecting projects involves representatives from the Company’s accounting, finance, legal, operations and investment teams. Environmental and social risks related to all financed projects are managed through the use of required counterparty risk reporting as well as internal tracking of all projects related environmental incidents. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Generate’s finance team will be responsible for the allocation and tracking of net proceeds to eligible projects. Generate intends to allocate all proceeds within 24 months of issuance, and all unallocated proceeds will be held in cash, cash equivalents or in marketable securities. This is in line with market practice.
REPORTING
Generate intends to publish a green bond report containing both project allocation and impact data, where feasible, to its website on an annual basis until full allocation. The allocation reporting is expected to include project or category-level details on eligible projects and the balance of unallocated proceeds. Generate’s impact reporting will include relevant quantitative impact metrics as indicated within the Framework. Sustainalytics views Generate’s allocation and impact reporting as aligned with market practice.