Project Details
Project
Ivanhoé Cambridge Sustainable Financing Framework Second-Party Opinion (2023)
Client
Ivanhoé Cambridge
Project Type
Sustainability Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Water/waste water management; Clean transport; Conservation; Pollution prevention and control; Affordable housing;
Location
Canada
Evaluation Date
May 2023
Evaluation Summary
Sustainalytics is of the opinion that the Ivanhoé Cambridge Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023, and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds Green Buildings, Renewable Energy, Energy Efficiency, Sustainable Water and Wastewater Management, Clean Transportation, Climate Change Adaptation, Biodiversity and Conservation, Pollution Prevention & Control, Affordable Housing, are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12 and 15.
PROJECT EVALUATION AND SELECTION
Ivanhoé Cambridge’s Sustainable Financing Working Group, consisting of the finance and capital market group, sustainability group, and legal affairs departments, will be responsible for the evaluation and selection of eligible projects as per the criteria outlined in the Framework. The Company has adopted internal policies and processes to address the environmental and social risks associated with the projects financed. Based on a well-defined project selection process and the Company’s risk management processes, Sustainalytics considers this to be aligned with market practice.
MANAGEMENT OF PROCEEDS
Ivanhoé Cambridge’s Sustainable Financing Working Group will oversee the management of proceeds. The company intends to fully allocate proceeds within 18 months of issuance. Unallocated net proceeds will be held in cash or liquid securities in accordance with its internal liquidity management policies. This is in line with market practice.
REPORTING
Ivanhoé Cambridge commits to report on allocation of proceeds on its website in a Sustainable Financing Report on an annual basis until full allocation. In addition, Ivanhoé Cambridgeintends to report on relevant impact metrics. Sustainalytics views Ivanhoé Cambridge’s allocation and impact reporting as aligned with market practice.