Second-Party Opinion Download

Sustainalytics is of the opinion that the Polaris Renewable Energy Inc. 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 category for the use of proceeds – Renewable Energy– is aligned with those recognized by the Green Bond Principles, the Green Loan Principles, and with the applicable Technical Screening Criteria of the EU Taxonomy Climate Delegated Act.  Sustainalytics considers that investments in the eligible categories are expected to facilitate the clean energy transition in the Americas and advance the UN Sustainable Development Goals, specifically SDG 7.

PROJECT EVALUATION / SELECTION

Polaris’ ESG Steering Committee, chaired by a senior officer and comprised of a minimum of two internal ESG specialists, will be responsible for evaluating and selecting projects that are in line with the eligibility criteria. Ultimately, all final decisions will be presented and approved by the Company’s board of directors. Polaris’ process for conducting individual environmental and social impact assessments is applicable to all allocation decisions under the Framework. Sustainalytics considers this risk management system to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Polaris’ Corporate Finance Group is responsible for the management of proceeds based on a portfolio approach, and will track the allocation of proceeds using existing internal systems. Polaris intends to allocate all proceeds within 36 months of issuance. Pending allocation, proceeds will be temporarily invested in cash or cash equivalents in accordance with Polaris’ cash management policy. This is in line with market practice.

REPORTING

Polaris intends to report on the allocation of proceeds through a specific and separate report on its website on an annual basis until full allocation. Allocation reporting will include details on the amount of proceeds allocated, the balance of unallocated proceeds, a list of outstanding bonds and the share of financing versus refinancing. In addition, Polaris is committed to reporting on relevant impact metrics such as installed renewable energy capacity, renewable energy generation (in MWh) and CO2 emission reductions. Sustainalytics views Polaris’ allocation and impact reporting as aligned with market practice.