Project Details
Project
LEG Immobilien SE Sustainable Financing Framework Second-Party Opinion (2021)
Client
LEG Immobilien SE
Project Type
Sustainability Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Affordable housing; Energy efficiency; Clean transport; Renewable energy; Socio-economic advancement; Green buildings;
Location
Germany
Evaluation Date
Jun 2021
Evaluation Summary
Sustainalytics is of the opinion that the LEG Sustainable Financing Framework is credible and impactful and aligns with the Green Bond Principles 2018, Social Bond Principles 2020, Sustainability Bond Guidelines 2018, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Affordable and Social Housing, Community Engagement, Green Buildings and Energy Efficiency, Renewable Energy, Clean Transportation – 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 SDG 1, 7, 9, and 10 and 11.
PROJECT EVALUATION / SELECTION
LEG Immobilien SE’s internal process in evaluating and selecting assets is overseen by a Sustainable Financing Committee consisting of representatives from the sustainable management team, controlling and risk management teams, and other senior management. The Committee is responsible for the approval of pre-selected eligible assets under the Sustainable Asset Categories in the company’s Sustainable Asset Pool. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Sustainable Financing Committee is in charge of LEG Immobilien SE’s processes for management of proceeds. Semi-annual review is conducted by the Committee to monitor the Sustainable Asset Pool. LEG intends to allocate the proceeds within 24 months after the issuance and has applied a 36-month lookback period for non-capital investment. Any temporary unallocated net proceeds will be managed in line with company’s investment strategy. This is in line with market practice.
REPORTING
LEG Immobilien SE intends to report on allocation of proceeds on their investor relations website on an annual basis until full allocation. The allocation report will include the total outstanding amount of Sustainable Financing Instruments, share of proceeds for financing and re-financing purpose, proceeds allocated per asset category, the balance of unallocated proceeds. In addition, LEG is committed to reporting on relevant impact metrics. Sustainalytics views LEG Immobilien SE’s allocation and impact reporting as aligned with market practice.