Project Details
Project
Metsä Group Green Finance Framework Second-Party Opinion (2019)
Client
Metsä Group
Project Type
Green Bond/Loan
Industry Group
Paper & Forestry
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Water/waste water management; Circular economy adapted products, production technologies and processes;
Location
Finland
Evaluation Date
Oct 2019
Evaluation Summary
Sustainalytics is of the opinion that the Metsä Group Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2018. 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 and the Green Loan Principles. Sustainalytics is of the opinion that investments in renewable energy, energy efficiency, pollution prevention and control, sustainable water and wastewater management, circular economy adapted products, production technologies and processes, and environmentally sustainable management of living natural resources and land use will lead to positive environmental impacts and advance various UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
Metsä Group’s internal process in evaluating and selecting projects is overseen by the Sustainable Funding Committee (SFC), which is comprised of relevant members of the management and is chaired by the Group CFO. Each Metsä Group company will identify and select potential projects, which are then presented to the SFC who makes the final review of proposed projects and determines eligibility for financing. This process is aligned with market practice.
MANAGEMENT OF PROCEEDS
Metsä Group’s process for management of proceeds is handled by Metsä Group Treasury. Metsä Group will establish a Green Funding Register for each Metsä Group company for the purpose of tracking and monitoring eligible assets and projects and the allocation of proceeds. Metsä Group will strive to ensure the amount of eligible assets match the total value of proceeds. If the total amount of outstanding proceeds exceeds the eligible assets, unallocated proceeds will be held in accordance with Metsä Group’s normal liquidity management policy. This process is aligned with market practice.
REPORTING
Metsä Group intends to report on the allocation of proceeds on its Group website on an annual basis. The allocation report will include a list and description of all eligible assets and projects funded, the total amounts allocated and the amounts of financing vs refinancing. In addition, Metsä Group is committed to reporting on relevant impact metrics. Sustainalytics views Metsä Group’s allocation and impact reporting as aligned with market practice.