Project Details
Project
Holaluz Green Finance Framework Second-Party Opinion (2022)
Client
Holaluz Clidom SA
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy
Location
Spain
Evaluation Date
Sep 2022
Evaluation Summary
Sustainalytics is of the opinion that the 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 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 / SELECTION
Holaluz’s Treasury team will be responsible for the evaluation and selection of projects based on the criteria defined in the Framework. The selected projects will be submitted to the Impact team representative on the Board for approval, and the CFO has final sign-off right on the selection of projects. Holaluz has adopted internal policies to mitigate environmental and social risks that are applicable to all allocation decisions made under the Framework. Sustainalytics considers this process in line with market practice.
MANAGEMENT OF PROCEEDS
Holaluz’s Treasury team will be responsible for the management of proceeds. Holaluz intends to achieve full allocation within 36 months of each issuance. Unallocated proceeds will be temporarily held or invested in its Treasury liquidity portfolio including cash or cash equivalents. This is in line with market practice.
REPORTING
Holaluz intends to report semi-annually on the allocation of proceeds in the allocation report and annually on associated impact metrics in the annual report on its website until full allocation. Allocation reporting will include the amount of allocated proceeds and the details of expenditures. In addition, Holaluz intends to report on quantitative impacts and has provided impact indicators in the Framework. Sustainalytics views the allocation and impact reporting process as aligned with market practice.