Skip to main content

Second-Party Opinion Download

Project Details


Northland Power Green Financing Framework Second-Party Opinion Update (2021)


Northland Power Inc

Project Type

Green Bond/Loan

Industry Group


Use of Proceeds

Renewable energy



Evaluation Date

Dec 2021

Evaluation Summary

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 2021. This assessment is based on the following: 


The eligible category for the use of proceeds – Renewable Energy – is aligned with those recognized by the Green Bond Principles 2021 and the Green Loan Principles 2021. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7. 


Northland Power (“Northland” or the “Company”) has an Investment Committee that 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 the risk management systems to be strong and the project selection process to be in line with market practice. 


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. 


Northland 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. 

Alignment with the EU Taxonomy  

Sustainalytics has assessed Northland’s Green Finance Framework for alignment with the EU Taxonomy and is of the opinion that, of the Framework’s three eligibility categories (which map to two EU activities), all three align with the applicable Technical Screening Criteria (“TSC”) in the EU Taxonomy and partially align with the Do No Significant Harm (“DNSH”) Criteria. No categories were determined to be not aligned. 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.