Second-Party Opinion Download

Sustainalytics is of the opinion that the GEP Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings and Renewable Energy – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that the eligible categories are expected to lead to positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.

PROJECT EVALUATION AND SELECTION

GEP has established a Green Finance Committee, which will be responsible for evaluating and selecting eligible assets in line with the Framework’s eligibility criteria. GEP will undertake an ESG risk assessment concerning all allocation decisions made under the Framework. Sustainalytics considers the risk management system and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

GEP’s Green Finance Committee, in collaboration with GEP’s Finance, Investment Management, Sustainability and Treasury departments, will be responsible for the management and allocation of proceeds. GEP intends to allocate all the proceeds to eligible assets at issuances or within 36 months from issuances. Pending allocation, GEP will temporarily invest the proceeds in cash, cash equivalents, other liquid marketable investments, or use the proceeds to repay existing indebtedness that are not associated with carbon-intensive or controversial activities. Sustainalytics considers this to be in line with market practice.

REPORTING

GEP commits to report on the allocation of proceeds and the corresponding impact on its website on an annual basis until full allocation. Allocation reporting will include the number of eligible projects, the amount of allocated proceeds, the amount of unallocated proceeds and the share of financing versus refinancing. In addition, GEP commits to reporting on relevant impact metrics. Sustainalytics views GEP’s allocation and impact reporting as aligned with market practice.

EU Taxonomy

Sustainalytics has assessed GEP’s Green Finance Framework for alignment with the EU Taxonomy, and mapped the criteria defined in the Framework’s two use of proceeds categories to four activities in the EU Taxonomy. Sustainalytics considers that all criteria from the Framework align with the applicable Technical Screening Criteria and the applicable Do No Significant Harm Criteria. Sustainalytics is also of the opinion that the activities and projects to be financed under the Framework will be carried out in alignment with the EU Taxonomy’s Minimum Safeguards.