Second-Party Opinion Download

Sustainalytics is of the opinion that the Northland Power Green Financing 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 – Renewable Energy – is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.  

PROJECT EVALUATION AND SELECTION

Northland’s Investment Committee will be responsible for identifying new eligible projects while its operations and asset management groups will identify expenditures related to upgrades and maintenance of assets. Final project selection will be made by Northland’s ESG Steering Committee. Northland’s company-level environmental and social risk mitigation processes are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

The proceeds raised under the Framework will be monitored by Northland’s Global Treasury team and reported to the ESG Steering Committee. The Company intends to allocate proceeds within 24 months of each issuance. Pending full allocation, proceeds will be held in cash reserves. This is in line with market practice. 

REPORTING

Northland Power intends to report on the allocation of proceeds on its website annually. Allocation reporting will include a list of eligible projects, amount of proceeds allocated by project category, and the balance of any unallocated proceeds. In addition, the company is committed to impact reporting on relevant metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice. 

EU Taxonomy  

Sustainalytics has assessed Northland’s Green Finance Framework for alignment with the EU Taxonomy. The criteria defined in the Framework’s use of proceeds category map to five activities in the EU Taxonomy. Sustainalytics is of the opinion that all the activities align with the applicable Technical Screening Criteria (TSC) and partially align with the Do No Significant Harm (DNSH) Criteria. Sustainalytics is also of the opinion that the activities and projects to be financed under the Framework will be carried out in alignment with the EU Taxonomy’s Minimum Safeguards.