Second-Party Opinion Download

Sustainalytics is of the opinion that the PolSolar Kft. Green Finance 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 and the Green Loan Principles. Sustainalytics considers that investments in the eligible category are expected to support the transition towards a low-carbon economy in Hungary and the EU and advance the UN Sustainable Development Goals, specifically SDG 7.

PROJECT EVALUATION / SELECTION

PolSolar has established a Green Finance Committee which is responsible for evaluating and selecting eligible projects in line with the eligibility criteria. PolSolar has conducted an environmental impact study and has developed a monitoring plan for each project which has been approved by an independent environmental authority. Sustainalytics considers the risk management system to be adequate and the process to be aligned with market practice. 

MANAGEMENT OF PROCEEDS

PolSolar’s Green Finance Committee will be responsible for managing the allocation of net proceeds to eligible projects and will track the proceeds through an internal register. PolSolar intends to allocate all proceeds within two years of issuance. Pending allocation, proceeds will be held temporarily in accordance with PolSolar’s liquidity management policies and guidelines in money market products, such as cash, cash equivalents,  bank deposits and sovereign bonds. Sustainalytics considers this process to be in line with market practice.

REPORTING

PolSolar intends to report on the allocation of proceeds and corresponding impact metrics in a green finance report which will be published on PolSolar’s website on an annual basis until full allocation. Allocation reporting will include information such as the total amount and type of the green financing instruments issued. Impact reporting may include metrics such as installed renewable energy capacity (MW) and estimated annual GHG emissions avoided (tCO2e). Sustainalytics views PolSolar’s allocation and impact reporting as aligned with market practice.