Project Details
Project
Northland Power Green Financing Framework Second-Party Opinion
Client
Northland Power Inc
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy
Location
Canada
Evaluation Date
Jan 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 2018 and the Green Loan Principles 2020. 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 2018 and the Green Loan Principles 2020. Sustainalytics considers that investments in projects in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION/SELECTION
Northland’s Investment Committee will be responsible for identifying eligible projects while its operation and asset management groups will be responsible for identifying eligible expenditures pertaining to upgrades and maintenance of assets. Final project selection will be made by Northland’s ESG Steering Committee. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Proceeds raised under the Framework will be deposited to Northland’s operating account (or the account of a subsidiary in the case of green financing by a special-purpose project entity), monitored by Northland’s Global Treasury team and reported to the ESG Steering Committee. Unallocated proceeds will be held in cash reserves, and Northland commits to allocating proceeds within 24 months of any issuance. Sustainalytics considers the management of proceeds process to be in line with market practice.
REPORTING
Northland intends to report on its website on an annual basis. Allocation reporting will include a list of eligible projects, amount of proceeds allocated by project category, and the balance of any unallocated proceeds. Impact reporting will include metrics such as installed net renewable energy capacity (MW), renewable energy production (MWh) and expected GHG reduced (tonnes of CO2 emissions). Sustainalytics views Northland Power Inc.’s allocation and impact reporting as aligned with market practice.