Project Details
Project
NBN Co Sustainability Bond Framework Second-Party Opinion (2024, June)
Client
NBN Co Limited
Project Type
Sustainability Bond/Loan
Industry Group
Telecommunication Services
Use of Proceeds
Energy efficiency; Access to essential services; Socio-economic advancement;
Location
Australia
Evaluation Date
Jun 2024
Evaluation Summary
Sustainalytics is of the opinion that the NBN Co Sustainability Bond 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, and Access to Essential Services and Socioeconomic Advancement and Empowerment– are aligned with those recognized by 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 7,9 and 10.
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’s Sustainability Bond Advisory Group, along with the sustainability team, is responsible for identifying and managing potential environmental and social risks associated with the eligible projects. Sustainalytics considers these risk management systems and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
NBN Co’s Treasury and Corporate Finance teams, with validation from the Sustainability Bond Advisory Group, will be responsible for management of proceeds, and will track the allocation of net proceeds using a 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 will report on allocation and impact of proceeds in its sustainability bond report, which will be published on its debt investor information portal on an annual basis until the maturity of the bond. Allocation reporting will include a list of all bonds issued and the outstanding amount in the reporting period, a summary of the terms of each transaction and details of use of proceeds. Sustainalytics views NBN Co’s allocation and impact reporting as aligned with market practice.