Project Details
Project
Goldman Sachs Sustainable Home Improvement Loans Use of Proceeds ABS Framework Second Party Opinion (2021)
Client
Goldman Sachs Asset Backed Securities Corp
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Energy efficiency; Renewable energy;
Location
U.S.
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that the Sustainable Home Improvement Loans Use of Proceeds ABS 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 category for the use of proceeds – ABS that finance Solar Energy Systems, batteries, and other improvements throughout the home – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7: Affordable and Clean Energy.
PROJECT EVALUATION / SELECTION
GoodLeap originates the Sustainable Home Improvement Loans and leverages proprietary technology and processes to evaluate and approve prospective customers. The Company’s custom credit-underwriting algorithm helps GoodLeap’s credit underwriters to make an immediate and informed decision on the approval of customers for financing. Once a customer meets GoodLeap’s underwriting requirements and the project satisfies GoodLeap’s criteria, funds are disbursed to the GoodLeap-approved installer and installation. GoodLeap approved installer and installation assess contractors on meeting certain risk assessment criteria. Sustainalytics considers this risk management systems to be adequate and the project evaluation and selection to be in line with market practice.
MANAGEMENT OF PROCEEDS
The proceeds of the Notes, directed to an underlying trust, will be used to acquire and hold Sustainable Home Improvement Loans and other related Sustainable Home Improvement Assets on behalf of the Issuer and the holders of Notes, including Class R Subordinate Notes. Once the Notes are issued, all Sustainable Home Improvement Loans will be assigned to the underlying trust. Sustainalytics believes that Goldman Sachs’s management of proceeds, through securitization structure, mechanisms, and involved entities, is in line with the market practice.
REPORTING
Goldman Sachs Asset-Backed Securities Corp. will publish the allocation of the proceeds in the offering memorandum upon the issuance of the Notes. GoodLeap utilizes models to estimate the aggregate capacity of the solar energy, and energy efficient systems that are financed by the Sustainable Home Improvement Loans, as a part of impact reporting. Sustainalytics views GoodLeap’s allocation and impact reporting as aligned with market practice.