Project Details
Project
Pattern Energy Operations LP Green Financing Framework Second-Party Opinion
Client
Pattern Energy Operations LP
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jul 2020
Evaluation Summary
Sustainalytics is of the opinion that the Pattern Energy Operations LP Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles 2020. 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 2018 and Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, particularly Goal 7.
PROJECT EVALUATION/SELECTION
Pattern Energy’s executive leadership team, comprised of representatives from all areas of the Company, will be responsible for overseeing the project evaluation and selection process. Pattern Energy’s finance and treasury team will be responsible for determining final allocation. The Company intends to fully allocate the green financing proceeds within 18 months of issuance. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Pattern Energy’s finance and treasury team will maintain a green financing register in order to manage the proceeds raised under the Framework. Pending full allocation, the Company will invest the balance of the net proceeds in cash or cash equivalents or other short-term marketable instruments, or repay existing liabilities, in line with its liquidity management practices. This is in line with market practice.
REPORTING
Pattern Energy has committed to providing updates on its website on an annual basis until full allocation. Allocation reporting will include a list of the eligible green projects to which proceeds have been allocated as well as the total number of unallocated funds. In addition, Pattern Energy is committed to reporting on relevant impact metrics, where feasible. Sustainalytics views Pattern Energy’s allocation and impact reporting commitments as aligned with market practice.