Project Details
Project
Opdenergy Green Finance Framework Second-Party Opinion (2023)
Client
Opdenergy Holding S.A.
Project Type
Green Bond/Loan
Industry Group
Energy Services
Use of Proceeds
Renewable energy
Location
Spain
Evaluation Date
Nov 2023
Evaluation Summary
Sustainalytics is of the opinion that the Opdenergy 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, Renewable Energy, is aligned with those recognized by the Green Bond Principles and 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 7.
PROJECT EVALUATION AND SELECTION
Opdenergy’s Development Team leads the internal process for evaluating and selecting projects. The Executive Committee oversees all project pipeline and selection decisions ahead of final approval by the board of directors. Opdenergy will carry out environmental and social impact assessments in collaboration with local stakeholders prior to projects taking place. Sustainalytics considers the project selection process to be aligned with market practice.
MANAGEMENT OF PROCEEDS
Opdenergy’s CFO will supervise the allocation of proceeds with the support of the Corporate Finance and Treasury teams. Opdenergy will track and monitor the proceeds using separate accounts or equivalent control systems. Opdenergy intends to allocate proceeds within three years of issuance. Unallocated proceeds will be temporarily held in cash or cash equivalents or invested in Opdenergy’s treasury liquidity portfolio. Sustainalytics considers this to be aligned with market practice.
REPORTING
Opdenergy commits to report on the allocation of proceeds on an annual basis until full allocation on its website or through other corporate presentations. Allocation reporting may include the total amount allocated to eligible projects and the balance of unallocated proceeds. In addition, Opdenergy intends to report on relevant impact metrics. Sustainalytics views Opdenergy’s allocation and impact reporting commitment as aligned with market practice.