Project Details
Project
Greenalia Green Finance Framework Second-Party Opinion (2024)
Client
Greenalia S.A.
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy
Location
Spain
Evaluation Date
Jan 2024
Evaluation Summary
Sustainalytics is of the opinion that the Greenalia 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 category for the use of proceeds, Renewable Energy, is aligned with those recognized by the Green Bond Principles and the Green Loan 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.
PROJECT EVALUATION AND SELECTION
Greenalia’s management committee will oversee the project evaluation and selection of eligible investments as per the criteria defined in the Framework. The committee consists of the President, CEO, Chief Financial Officer and senior representatives from the corporate development, operations and maintenance, brand and communications, and construction teams. Greenalia has adopted an internal procedure to address environmental and social risks associated with projects being financed. This is aligned with market practice.
MANAGEMENT OF PROCEEDS
Greenalia’s finance team will oversee the process for management of proceeds under the supervision of the CFO. Greenalia will use an internal tracking system to track the allocation of net proceeds. Greenalia intends to fully allocate net proceeds within 12 months of issuance. Should any proceeds remain unallocated, they will be temporarily held in cash or cash equivalents. This is aligned with market practice.
REPORTING
Greenalia commits to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include details such as the amount invested in the eligible projects and the balance of unallocated proceeds. In addition, Greenalia intends to report on the corresponding impact of the use of proceeds. Sustainalytics views Greenalia’s allocation and impact reporting as aligned with market practice.