Project Details
Project
Plantations International Secured Collateral Green Bond Framework (2022)
Client
Plantation International
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
Renewable energy; Sustainable agriculture; Green buildings;
Location
Luxembourg
Evaluation Date
Sep 2022
Evaluation Summary
Sustainalytics is of the opinion that the Plantations International Secured Collateral Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Sustainable Packaging, Sustainable Agriculture and Green Buildings – are aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 9 and 12.
PROJECT EVALUATION / SELECTION
Plantations International’s executive committee and the Sustainable Agroforestry Securitisation Fund (Luxembourg) will be responsible for evaluating and selecting projects that are in line with the Framework’s eligibility criteria. Plantations International has internal processes to identify and mitigate environmental and social risks commonly associated with the eligible projects, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Plantations International accounting system, along with the accounting systems of its subsidiaries in each country, will be responsible for the daily monitoring of proceeds for eligible projects. Plantations International will establish a green bond programme to track the allocation of net proceeds and follow a bond-by-bond approach to manage them. Proceeds will be fully allocated within two years from the bond issuance. Pending allocation, unallocated proceeds will be temporarily held in cash, cash equivalents or other liquid instruments until full allocation. Plantations International intends to monitor the allocation of proceeds to eligible projects and their underlying impacts across secured green bonds to ensure transparency and avoid double counting. This process is in line with market practice.
REPORTING
Plantations International intends to report on the allocation of proceeds in its annual report on its website on an annual basis until full allocation. The allocation report will include the total amount of investments and expenditures for each secured green bond and the amount of allocated and unallocated proceeds. In addition, Plantations International is committed to reporting on relevant impact metrics. Sustainalytics views Plantations International’s allocation and impact reporting as aligned with market practice.