Project Details
Project
Lund Municipality Green Bond Framework Second-Party Opinion (2024)
Client
Lund Municipality
Project Type
Green Bond/Loan
Industry Group
Municipality
Use of Proceeds
Clean transport; Renewable energy; Green buildings; Energy efficiency; Water/waste water management; Climate change adaptation;
Location
Sweden
Evaluation Date
Feb 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Clean Transportation, Renewable Energy, Green and Energy-Efficient Buildings, Energy Efficiency, Water and Wastewater Management, Waste and Circularity, and Environmental and Climate-Adaptation Measures – 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, 14 and 15.
PROJECT EVALUATION AND SELECTION
Lund Municipality has established a committee that is responsible for the project evaluation and selection process in accordance with the eligibility criteria under the Framework. Lund Municipality has adopted internal guidelines and processes, and relies on the compliance with applicable regional regulations, to manage environmental and social risks associated with eligible projects. Sustainalytics considers the project selection process and the risk management system to be in line with market practice.
MANAGEMENT OF PROCEEDS
Lund Municipality’s Finance department will be responsible for the allocation and tracking of proceeds using a green register. Lund Municipality intends to allocate proceeds to eligible projects within one year of issuance. Pending full allocation, proceeds will be temporarily placed in the municipality’s general liquidity reserve. This is in line with market practice.
REPORTING
Lund Municipality commits to report on the allocation of proceeds and corresponding impact on its website on an annual basis until full allocation. Allocation and impact reporting may include details such as the nominal amount of outstanding green bonds, the relative share of new financing versus refinancing, descriptions of selected green projects financed, the balance of unallocated proceeds, and annual energy savings and production. Sustainalytics views Lund Municipality’s allocation and impact reporting as aligned with market practice.