Second-Party Opinion Download

Sustainalytics is of the opinion that the NSW Sustainability Bond Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:  

USE OF PROCEEDS

All of the 11 eligible categories for the use of proceeds  are aligned with those recognized by the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that investments in the eligible categories will contribute towards the New South Wales (NSW) Government’s environmental and social objectives and advance the UN Sustainable Development Goals, specifically SDG 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 14 and 15. 

PROJECT EVALUATION / SELECTION

The NSW Sustainability Bond Programme’s internal process for evaluating and selecting projects will be overseen by the NSW Sustainability Bond Committee (NSBC), chaired by the NSW Treasury Corporation (TCorp), in collaboration with the Asset Identification Group (AIG) led by the NSW Office of Social Impact Investment (OSII) division of NSW Treasury. The NSBC will be the final approver of eligible projects assessed and recommended by the AIG. TCorp’s assessment of material risks and mitigants of projects, including negative social and environmental impacts, is applicable to all allocation decisions made under the Framework. Sustainalytics considers the said assessment as adequate risk management, and the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

TCorp’s finance department will oversee the management and tracking of proceeds with an internal reporting system. Pending allocation, unallocated proceeds will be temporarily invested in cash, cash equivalent instruments, other investment instruments with relevant restrictions, or in reducing revolving indebtedness. This is in line with market practice.

REPORTING 

Corp intends to publish an annual report for all outstanding bonds issued under the NSW Sustainability Bond Programme. The reporting is coordinated by the Reporting Group, led by OSII and will include information on details of the projects being financed or refinanced, the expected environmental and social impacts, qualitative and quantitative impact performance measures of the nominated projects and assets, and alignment with ICMA principles and the UN SDGs. In addition, TCorp is committed to reporting on relevant impact metrics. Sustainalytics views TCorp’s allocation and impact reporting as aligned with market practice.