Project Details
Project
Hudson Green Financing Framework Second-Party Opinion
Client
Hudson Sustainable Group
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Oct 2020
Evaluation Summary
Sustainalytics is of the opinion that the Hudson Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Water Quality and Conservation and Biomass Generation – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that investments in projects in these areas will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6: Clean Water and Sanitation and 7: Affordable and Clean Energy.
PROJECT EVALUATION/SELECTION
Hudson Sustainable Group’s Investment Opportunities Team along with deal team members will be responsible for project evaluation and selection. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The company’s Finance and Treasury Department will be responsible for establishing and maintaining an ongoing record of allocations. Unallocated proceeds will be held in cash or cash equivalents, short-term investments, or used to repay existing external debt obligations This is in line with market practice.
REPORTING
Hudson Sustainable Group intends to report on allocation of proceeds in its annual sustainability report which will include details on the Eligible Projects financed. In addition, the company will report on the environmental impacts of the portfolio using relevant quantitative metrics. Sustainalytics views Hudson Sustainable Group’s allocation and impact reporting as aligned with market practice.