Project Details
Project
Greenalia Green Finance Framework Second-Party Opinion (2021)
Client
Greenalia S.A.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Spain
Evaluation Date
Nov 2021
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 2021. 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 Green Loan Principles. Sustainalytics considers that investments in the eligible category are expected to support the clean energy transition in Spain and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION / SELECTION
Greenalia’s management committee is responsible for evaluating and selecting projects in line with the eligibility criteria in the Framework and Greenalia’s internal policies on project development. The management committee is composed of Greenalia’s management and executive team. Greenalia has a dedicated environmental and social risk assessment and mitigation process that is applicable to all allocation decisions made under the Framework. Sustainalytics considers this risk management process to be strong and to be aligned with market best practice, and further considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Greenalia’s Finance team will be responsible for the management and allocation of proceeds using a portfolio approach, with oversight from the CFO. Greenalia intends to allocate all proceeds within one year of issuance. Pending allocation, proceeds will be temporarily held in cash or cash equivalents in Greenalia’s treasury portfolio. This is in line with market practice.
REPORTING
Greenalia intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount allocated for development, engineering, procurement, construction, operation, and maintenance of the renewable energy projects, the balance of unallocated proceeds, and the share of financing versus refinancing. In addition, Greenalia is committed to reporting on relevant impact metrics. Sustainalytics views Greenalia’s allocation and impact reporting as aligned with market practice.