Project Details
Project
Orange SA Sustainability Financing Framework Second-Party Opinion (2024)
Client
Orange S.A.
Project Type
Sustainability Bond/Loan
Industry Group
Telecommunication Services
Use of Proceeds
Energy efficiency; Renewable energy; Circular economy adapted products, production technologies and processes; Socio-economic advancement; SME finance and microfinance; Education;
Location
France
Evaluation Date
Nov 2024
Evaluation Summary
Sustainalytics is of the opinion that the Orange SA Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds - Energy Efficiency; Renewable Energy; Circular Economy; Accelerating Deployment of Optic Fibre Networks in Areas at Risk of Digital Exclusion; Accelerating Deployment of Mobile Networks in Areas at Risk of Digital Exclusion; Digital Skills; Supporting Financial and Social Integration; and Supporting Entrepreneurship- are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 8, 9, 10 and 12.
PROJECT EVALUATION AND SELECTION
Orange has established a Sustainable Financing Committee (SFC), which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The SFC convenes at least annually and consists of representatives from the Corporate Social Responsibility, Treasury, Controlling and Legal departments supported by other business departments or functional teams that have relevant technical and sustainability expertise. The SFC will leverage Orange’s corporate governance and internal standards to monitor and mitigate environmental and social risks associated with the projects financed under the Framework. This is in line with market practice.
MANAGEMENT OF PROCEEDS
The SFC will be responsible for the management of net proceeds and will track their allocation using a Sustainability Register. Orange intends to allocate proceeds within 24 months after issuance. Pending full allocation, unallocated proceeds will be placed temporarily in cash, cash equivalents, socially responsible investment funds or other liquid marketable instruments. This is in line with market practice.
REPORTING
Orange commits to report on the allocation of proceeds and the corresponding impact in an allocation and impact report, which will be published on its website on an annual basis until the proceeds have been fully allocated. Allocation reporting will include the total amount of proceeds allocated per category, share of financing and refinancing, amount of unallocated proceeds, share of co-financing when relevant and breakdown of eligible projects per geography. Sustainalytics views Orange’s allocation and impact reporting as aligned with market practice.