Project Details
Project
Nivika Green Finance Framework Second-Party Opinion (2024)
Client
Nivika Fastigheter AB
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings
Location
Sweden
Evaluation Date
Oct 2024
Evaluation Summary
Sustainalytics is of the opinion that the Nivika Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green and Energy-Efficient Buildings, is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.
PROJECT EVALUATION AND SELECTION
Nivika’s Green Finance Committee will be responsible for the evaluation and selection of projects in accordance with the Framework’s eligibility criteria. Nivika has internal processes to identify and mitigate environmental and social risks, which apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Nivika’s Green Finance Committee will be responsible for the management of proceeds and will track allocation using a green register following a portfolio approach. Nivika intends to fully allocate proceeds at the time of issuance. Pending full allocation, unallocated proceeds will be placed in Nivika’s liquidity reserves as cash, cash equivalents or short-term liquid instruments. This is in line with market practice.
REPORTING
Nivika will report on the allocation and impacts of proceeds publicly on its website on an annual basis until full allocation and in the case of material developments. Allocation reporting will include a summary of key developments and highlights, the outstanding amount of green debt issued, the proportion of financing and refinancing and the balance of unallocated proceeds. Sustainalytics views Nivika’s allocation and impact reporting as aligned with market practice.