Second-Party Opinion Download

Sustainalytics is of the opinion that the PA Housing Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, and Green Loan Principles 2021. This assessment is based on the following:  

USE OF PROCEEDS

The eligible categories for the use of proceeds – Affordable New Build Homes, Green Buildings, Sustainable Estates, Communities and Public Spaces – are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and Green Loan Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 9, and 11. 

PROJECT EVALUATION / SELECTION

PA Housing’s internal process in evaluating and selecting projects is overseen by the Company’s Sustainable Investment Panel on a monthly basis. The Assistant Director of Regeneration sponsors PA Housing’s sustainability strategy and advises the panel on the progress on strategy objectives. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

PA Housing’s processes for management of proceeds is tracked using an internal process to track, document and monitor funds. The tracking process is overseen by the Sustainable Investment Panel. This internal process identifies eligible projects, matches proceeds, and monitors project spending. Pending allocation, unallocated proceeds will be held as cash deposits, in sterling denominated money market funds that are in line with the Company treasury management policy or used for short-term repayment of debt prior to full allocation. PA Housing expects to fully allocate proceeds within three years from the date of the receipt of funds. This is in line with market practice.

REPORTING

PA Housing intends to report annually on allocation of proceeds and impact on its website until maturity of the sustainable financing instrument. The allocation report will include outstanding net proceeds, share of proceeds used for refinancing and financing as well as share of proceeds used per category, share of unallocated proceeds and a list of eligible green and social assets financed by outstanding sustainable financing. In addition, PA Housing is committed to reporting on relevant impact metrics as listed out in Appendix 1. Sustainalytics views PA Housing’s allocation and impact reporting as aligned with market practice.