Project Details
Project
Prologis Green Financing Framework Second-Party Opinion (2024)
Client
Prologis
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Clean transport; Pollution prevention and control;
Location
U.S.
Evaluation Date
Jan 2024
Evaluation Summary
Sustainalytics is of the opinion that the Prologis 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 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, and Circular Economy and Pollution Prevention & Control, are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
The Green Financing Committee, which comprises representatives from Prologis’ management and its ESG team, will be responsible for the project evaluation and selection process. Prologis has processes in place to identify and manage environmental and social risks associated with the eligible projects, which apply to all allocation decisions made under the Framework. Sustainalytics considers this to be in line with market practice.
MANAGEMENT OF PROCEEDS
Prologis’ Green Financing Committee will monitor and track the allocation of proceeds using an internal registry and oversee the management of proceeds using a bond-by-bond or portfolio approach. Prologis intends to allocate all proceeds within 36 months of issuance. Pending allocation, unallocated proceeds will be used for capital management activities or repayment of debt. Sustainalytics considers this to be aligned with market practice.
REPORTING
Prologis commits to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting may include the list of eligible projects and amount of proceeds allocated to them, and the balance of unallocated proceeds. In addition, Prologis intends to report on relevant impact metrics. Sustainalytics views Prologis’ allocation and impact reporting as aligned with market practice.