Project Details
Project
Oncor Sustainable Bond Framework Second-Party Opinion
Client
Oncor Electric Delivery Company LLC
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Sep 2020
Evaluation Summary
Sustainalytics is of the opinion that the Oncor Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Socio-Economic Advancement and Socioeconomic Empowerment including Gender inclusion, Renewable Energy, Energy Efficiency, Clean Transportation and Green Workspaces are aligned with those recognised by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in these areas will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 5, 7, 9, 10 and 11.
PROJECT EVALUATION/SELECTION
Oncor's Sustainable Finance Committee, with cross-departmental representation, is charged with selecting eligible projects. Final approval of any project will be made by the Treasurer. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Oncor's Treasury department will be responsible for managing the proceeds of its sustainability bond, and will annually allocate to eligible projets. Pending allocation/disbursement, proceeds will be held in liquid, short-term instruments or used to pay Oncor indebtedness, or both. This is in line with market practice.
REPORTING
Oncor intends to provide a report detailing the allocation/disbursement of proceeds from its sustainability bonds, as well as providing relevant impact metrics, annually until the proceeds are fully allocated/disbursed. This is in line with market practice.