Second-Party Opinion Download

Sustainalytics is of the opinion that the Housing New Zealand (HNZ) Sustainability Financing Framework is credible and impactful, and aligns with the Green Bond Principles 2018, Social Bond Principles 2018 and Sustainability Bond Guidelines 2018 as well as the Green Loan Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The four eligible categories for the use of proceeds – (i) Green Buildings, (ii) Pollution Prevention and Control (iii) Affordable Housing and (iv) Socioeconomic Advancement and Empowerment - are aligned with those recognized by both Green Bond Principles, Social Bond Principles and the Green Loan Principles. Sustainalytics considers the eligible projects will lead to positive environmental and social impacts through decreasing waste and GHG emissions while supporting sustainable cities and communities in New Zealand. In addition, Sustainalytics considers that the eligible projects will advance the UN Sustainable Development Goals (SDGs), specifically SDG 7, 10, 11 and 12.

PROJECT EVALUATION/SELECTION

HNZ’s candidate eligible projects are evaluated and selected by its dedicated Sustainability Financing Working Group (SFWG) based on the established eligibility criteria. The SFWG consists of cross-functional representatives from treasury and financial control teams as well as HNZ’s business partners. The final candidates for financing are reviewed and approved by the Chief Financial Officer (CFO) as a final validation. This process is aligned with the market practices.

MANAGEMENT OF PROCEEDS

The net proceeds from sustainable financing instruments will be earmarked for allocation to eligible projects and recorded in HNZ’s Sustainability Financing Register, which is managed by the SFWG. Pending full allocation, the unallocated proceeds will be invested according to the HNZ Group Treasury Policy. This process is in line with market practices.

REPORTING

HNZ commits to report allocation of proceeds and impact on the company’s website as part of its annual report until full allocation of proceeds. Allocation reporting will include a list of eligible projects, description of major projects, the total amount allocated to eligible projects and the amount of unallocated proceeds. Where possible, the impact reporting will include relevant impact metrics per each green and social project category. Sustainalytics views HNZ’s allocation and impact reporting as aligned with market practices.