Project Details
Project
Genova Green Finance Framework Second-Party Opinion (2024)
Client
Genova Property Group AB
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Energy efficiency; Renewable energy;
Location
Sweden
Evaluation Date
Jul 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency and Renewable Energy – 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 and 9.
PROJECT EVALUATION AND SELECTION
Genova has established a Green Finance Committee which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The Green Finance Committee convenes at least annually and consists of representatives from the City Planning, Finance and Business Development departments. Regarding environmental and social risks associated with eligible projects, Genova has a Sustainability Policy that applies to all allocation decisions made under the Framework. Genova will also implement processes to ensure that eligible projects adhere to applicable laws and regulations. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Genova’s Finance department will be responsible for the management of net proceeds and will track allocation through a portfolio approach. Genova intends to allocate proceeds within 12 months of each issuance on a best-effort basis. Pending full allocation, unallocated proceeds will be temporarily placed in Genova’s ordinary bank account. This is in line with market practice.
REPORTING
Genova will report on the allocation of proceeds and the corresponding impact in an investor report, which will be published on its website on an annual basis until the maturity of any issued instruments. Allocation reporting will include the total amount of proceeds outstanding, a breakdown by instrument category and eligible asset category, share of financing versus refinancing, and the share of unallocated proceeds. Sustainalytics views Genova’s allocation and impact reporting as aligned with market practice.