Second-Party Opinion Download

Sustainalytics is of the opinion that the New York Power Authority Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds, electric transmission infrastructure, is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that investments in refurbishing, upgrading, and modernizing New York’s power grids will lead to positive environmental impacts by facilitating the use of low-carbon energy and advance the UN Sustainable Development Goals, specifically SDG 7: Affordable and Clean Energy.

PROJECT EVALUATION/SELECTION

New York Power Authority’s internal process in evaluating and selecting projects is based on the four-year Capital Plan detailed in its 2020 Capital Budget. NYPA’s treasury team has selected specific projects from this Plan that are specified within the Framework. Sustainalytics considers the project selection process to be line with market practice.

MANAGEMENT OF PROCEEDS

New York Power Authority will deposit the proceeds of its green bonds in separate accounts and manage the allocation process using its existing internal tracking system. Pending allocation, proceeds may be held in liquid instruments as per its investment policy. This is in line with market practice.

REPORTING

New York Power Authority make efforts to disclose allocation and impact information such as allocated amounts, project location, and project capacity, as well as broader reporting about its alignment to State environmental objectives. Sustainalytics highlights that reporting is considered to be one of the core components of the green bond market and encourages NYPA to prioritize these actions.