Project Details
Project
Intersect Power Green Finance Framework Second-Party Opinion (2024)
Client
Intersect Power Green Finance Framework Second-Party Opinion (2024)
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy; Energy efficiency;
Location
U.S.
Evaluation Date
May 2024
Evaluation Summary
Sustainalytics is of the opinion that the Intersect Power Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy and Energy Efficiency – are aligned with those recognized by the Green Bond Principles and the Green Loan 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 and 9.
PROJECT EVALUATION AND SELECTION
Intersect Power’s Green Finance Committee – which consists of representatives from the Finance, Treasury, ESG, Development and Operations departments – will be responsible for evaluating and selecting eligible green projects. The Green Finance Committee will also be responsible for identifying and mitigating ESG-related risks. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Intersect Power will establish an internal tracking system to track all eligible projects. The Company’s Finance representative in the Green Finance Committee or a delegate will be responsible for the allocation of proceeds. Intersect Power intends to reach full allocation within 36 months. Pending full allocation, Intersect Power will temporarily invest proceeds in cash or cash equivalents as per the Intersect Power Investment Policy and reallocate to eligible green projects when feasible. This is in line with market practice.
REPORTING
Intersect Power will report on the allocation of proceeds and corresponding impact in a Green Financing Report on an annual basis, until the maturity of the Green Financing Instruments. The report will be published on the Company’s website for public green bond issuances and made available directly to the investors or lenders for other green financing instruments. Allocation reporting will include details such as the amount of investments and expenditures allocated to eligible projects, a list of financed eligible green projects and the share of allocation to new and existing eligible green projects. Additionally, Intersect Power will report on relevant impact metrics. This is in line with market practice.