Project Details
Project
Japan Real Estate Investment Green Bond Framework Second-Party Opinion
Client
Japan Real Estate Investment
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Japan
Evaluation Date
Sep 2018
Evaluation Summary
Sustainalytics is of the opinion that the Japan Real Estate Investment (JRE) Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, green buildings and energy efficiency, are recognized by the Green Bond Principles. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals (SDG), specifically SDG 11.
PROJECT EVALUATION/SELECTION
JRE’s internal process of evaluating and selecting projects is in line with market best practice, considering that the process will involve C-level executives such as JRE-AM's President and CEO (Chief Sustainability Officer), and Planning Division’s Head of ESG Office (Sustainability Officer).
MANAGEMENT OF PROCEEDS
JRE is committed to allocating the net proceeds from the relevant green bond to Eligible Green Projects. Additionally, the company has an internal process in place to track and monitor the allocation of proceeds and manage any amount outstanding, which is in line with market practice.
REPORTING
JRE intends to report on allocation of proceeds on its website on an annual basis. In addition, JRE is committed to reporting environmental performance indicators including energy consumption, water consumption and CO2 emissions. In Sustainalytics’ view, reporting on these metrics is in line with market practice.