Second-Party Opinion Download

Sustainalytics is of the opinion that the Jönköping Municipality Green and Blue 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 – Renewable Energy, Energy Efficiency, Climate Change Adaptation, Sustainable Water and Wastewater Management, Green Buildings, and Pollution Prevention and Control – 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 6, 7, 9, 11, 12 and 13.

PROJECT EVALUATION AND SELECTION.

Jönköping Municipality’s Green and Blue Bond Working Group, consisting of representatives from the administration, finance and sustainability units of its municipal companies, will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. Jönköping Municipality has in place policies and governing documents to identify and manage potential environmental and social risks associated with the eligible projects. It also ensures that all investments under the Framework align with Swedish national environmental and social regulations. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Jönköping Municipality’s Finance department will manage the proceeds through an internal tracking spreadsheet on a portfolio basis. Jönköping Municipality intends to allocate proceeds within 12 months of issuance. Pending full allocation, any unallocated proceeds will be retained among Jönköping Municipality’s liquidity reserves as cash or cash equivalent. This is in line with market practice.

REPORTING

Jönköping Municipality will publish an allocation and impact report on its website annually until full allocation and in the case of any material developments. Jönköping Municipality’s allocation reporting will include details such as the amounts of outstanding green and blue bonds; the split between financing and refinancing; the breakdown of eligible projects by category; a description of selected eligible projects; and the share of unallocated proceeds. Jönköping Municipality may obtain an annual external verification on the allocation of proceeds. Sustainalytics views Jönköping Municipality’s allocation and impact reporting as aligned with market practice.