Second-Party Opinion Download

Sustainalytics is of the opinion that the PSA Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021, the Green Loan Principles 2023 and ASEAN Green Bond Standards 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Clean Transportation; Energy Efficiency; Renewable Energy; Climate Change Adaptation; Green Buildings; Pollution Prevention, Control and Circular Economy; Waste Management and Resource Efficiency and Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles, Green Loan Principles and ASEAN Green Bond Standards. Sustainalytics considers that investments in the eligible categories are expected to reduce the environmental footprint of port development and shipping operations globally and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12 and 13.

PROJECT EVALUATION AND SELECTION

PSA entities’ finance department is responsible for sourcing and nominating potential green projects, after which the Group Treasury, Climate Response Command and Supply Chain Sustainability Solutions teams will review and evaluate the selected projects in line with the Framework’s eligibility criteria. PSA has processes in place to identify and mitigate common environmental and social risks associated with the eligible projects, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers PSA’s risk management system to be adequate and the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

PSA’s Group Treasury and/or PSA entities’ finance department will oversee the process for the management of proceeds, where the proceeds will be tracked through a green project register. PSA intends to fully allocate net proceeds within 24 months of issuance. Pending full allocation, unallocated proceeds will be held in cash or cash equivalents instruments in accordance with PSA’s Group fFinance pPolicies and pProcedures. This is in line with market practice.

REPORTING

PSA intends to report on the allocation of proceeds and corresponding impact on an annual basis until full allocation. The allocation and impact reporting for green bond proceeds will be published on the relevant PSA entity issuer’s website, as a standalone report or in PSA’s Ssustainability rReport, while that for green loan proceeds will be made available to lenders upon request. The allocation report will include the amount of proceeds allocated per category, a description of eligible projects funded, the share of financing versus refinancing and the share of unallocated proceeds. In addition, PSA is committed to reporting on relevant impact metrics. Sustainalytics views PSA’s allocation and impact reporting as aligned with market practice.