Project Details
Project
NBN Co Sustainability Bond Framework Second Party Opinion (2024)
Client
NBN Co Limited
Project Type
Sustainability Bond/Loan
Industry Group
Telecommunication Services
Use of Proceeds
Renewable energy; Energy efficiency; Access to essential services; Socio-economic advancement;
Location
Australia
Evaluation Date
Mar 2024
Evaluation Summary
Sustainalytics is of the opinion that the Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS :
The eligible categories for the use of proceeds - Energy Efficiency, Renewable Energy and Access to Essential Services and Socio-economic Advancement and Empowerment – are aligned with those recognized by both the Green Bond Principles and Social Bond 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 SDGs 7 and 9.
PROJECT EVALUATION AND SELECTION :
NBN Co’s Sustainability Bond Advisory Group will be responsible for the process of evaluating and selecting eligible projects as per the Framework’s criteria. NBN Co has established internal policies and a risk management standard to support the management of environmental and social risks associated with the projects and assets financed, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS :
NBN Co’s Sustainability Bond Advisory Group will be responsible for management of proceeds using sustainable bond register. NBN Co intends to allocate net proceeds to eligible projects within 24 months from issuance. Pending allocation, unallocated proceeds will temporarily be held in cash or cash equivalents. This is in line with market practice.
REPORTING :
NBN Co commits to report on allocation of proceeds in its sustainability bond report which will be published on its website on an annual basis until the maturity dates of the bond. In addition, NBN Co is committed to report on relevant impact metrics, where feasible. Sustainalytics views NBN Co’s allocation and impact reporting as aligned with market practice.