Project Details
Project
Korea East-West Power Co. Ltd Sustainability Bond Framework Second-Party Opinion
Client
Korea East-West Power Co. Ltd
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
May 2018
Evaluation Summary
Sustainalytics is of the opinion that the Korea East-West Power Co. Ltd Sustainability Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2017, the Social Bond Principles 2017 and the Sustainability Bond Guidelines. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles, the Social Bond Principles and the Sustainability Bond Guidelines as project categories with clear environmental benefits and which seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that EWP’s investments will contribute to shifting EWP’s business model towards renewable energy production and away from fossil-fuel based electricity production. Moreover, Sustainalytics views EWP’s social investments as contributing to the growth of the Korean SME network, while providing benefits for the underprivileged local communities.
PROJECT EVALUATION/SELECTION
EWP’s project evaluation and selection process is executed by the company’s Treasury Department along with the relevant teams and departments within EWP’s New Growth Technology Division, which are tasked to choose ‘Eligible Projects’ based on a clear set of eligibility and exclusionary criteria. Sustainalytics assesses this process as being in line with market practices.
MANAGEMENT OF PROCEEDS
EWP’s management of proceeds will be overseen by EWP’s treasury team and the company has an internal process to segregate and track sustainability bond proceeds. This process is aligned with market practices.
REPORTING
EWP commits to disclosing a comprehensive allocation and impact report on the company’s website annually comprising relevant transaction information along with environmental and social impact metrics. Sustainalytics highlights EWP’s commitment to provide investors with comprehensive impact reporting and anticipates the level of disclosure and detail to be aligned with current market practices.