Project Details
Project
Hydro Ottawa Green Bond Framework Second-Party Opinion (2024)
Client
Hydro Ottawa Holdings Inc.
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy; Clean transport; Green buildings; Energy efficiency; Conservation; Climate change adaptation;
Location
Canada
Evaluation Date
Dec 2024
Evaluation Summary
Sustainalytics is of the opinion that the Hydro Ottawa Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Clean Energy, Clean Transportation, Green Buildings, Energy Efficiency, Biodiversity and Conservation, Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 13 and 15.
PROJECT EVALUATION AND SELECTION
Hydro Ottawa’s Treasury Department is responsible for the evaluation and selection of projects in accordance with the eligibility criteria of the Framework. The Company maintains an environmental management system and conducts public consultations and environmental assessments to mitigate social and environmental risks. Sustainalytics considers the project selection process and the environmental and social risk management process in line with market practice.
MANAGEMENT OF PROCEEDS
Hydro Ottawa’s treasury group will be responsible for tracking the allocation of proceeds using a green bond register. Hydro Ottawa and its subsidiaries intend to fully allocate proceeds within 36 months of issuance. Pending full allocation, net proceeds will be temporarily utilized for repayment of debt or held in cash equivalents, such as investment in bank deposits. This is in line with market practice.
REPORTING
Hydro Ottawa will report on allocation on its website on an annual basis until full allocation. Allocation reporting will include details such as amounts allocated to eligible categories and the balance of unallocated proceeds. In addition, Hydro Ottawa intends to report on relevant impact metrics. Sustainalytics views Hydro Ottawa’s allocation and impact reporting as aligned with market practice.