Project Details
Project
Oxford Green Financing Framework Second-Party Opinion (2022)
Client
Oxford Properties Group
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Clean transport; Water/waste water management; Pollution prevention and control; Climate change adaptation;
Location
Canada
Evaluation Date
Oct 2022
Evaluation Summary
Sustainalytics is of the opinion that the Oxford 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:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, Sustainable Water and Wastewater Management, Pollution Prevention and Control, and Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 11 and 12.
PROJECT EVALUATION / SELECTION
Oxford’s Green Financing Working Group will oversee the internal process in evaluating and selecting projects. Oxford has adopted internal policies and processes to address environmental and social risks associated with the projects financed. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Oxford’s Green Financing Working Group will oversee the management of proceeds. Oxford intends to fully allocate proceeds within 24 months of issuance. Pending full allocation, net proceeds will be temporarily held in cash, cash equivalents or other securities or used to repay or refinance debt that has no association with carbon-intensive activities or in accordance with the Company’s investment policies and procedures. This is in line with market practice.
REPORTING
Oxford intends to report on the allocation and impact of proceeds in its Green Financing Report on its website on an annual basis until full allocation. The allocation reporting will include disclosure on the net proceeds generated from each green financing, the proceeds allocated to each eligible green project and the balance of unallocated net proceeds. Additionally, Oxford is committed to reporting on relevant impact metrics. Sustainalytics views Oxford’s allocation and impact reporting as aligned with market practice.