Second-Party Opinion Download

Sustainalytics is of the opinion that the Georgia Global Utilities Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Sustainable Water and Wastewater Management, and (v) Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will facilitate the generation of renewable energy and the development of sustainable water resource management in Georgia while building resilience to climate change. Sustainalytics further considers that the eligible investments will advance the UN Sustainable Development Goals, specifically SDGs 6, 7, and 13.

PROJECT EVALUATION/SELECTION

Georgia Global Utilities’ Green Bond Committee, comprised of cross-functional representatives including Head of Energy, Head of Water, Head of Environmental and Social Affairs, Chief Financial Officer, and Head of IR and Funding, will review and approve eligible projects on a quarterly basis. Sustainalytics views this process as in line with market practice.

MANAGEMENT OF PROCEEDS

Georgia Global Utilities’ Finance Department will manage and track the proceeds using an established register. Pending full allocation, unallocated proceeds will be held in cash deposits complying with the relevant internal policies. This process is in line with market practice.

REPORTING

Georgia Global Utilities commits to provide an annual allocation and impact report, which will be compiled by the GGU Finance and Environmental & Social Departments, on its website until the date of maturity of the Green Bond. Allocation reporting will disclose the total amount per each category and the share of financing and refinancing, as well as the balance of unallocated proceeds. Where feasible, impact reporting will provide relevant environmental impact metrics, along with the underlying methodology used in the quantitative determination. Until full allocation, Georgia Global Utilities commits to provide an annual review conducted by an external auditor. Sustainalytics views this allocation and impact reporting as aligned with market best practice.