Second-Party Opinion Download

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

USE OF PROCEEDS

The eligible categories for the use of proceeds – Sustainable Water and Wastewater Management and Renewable Energy – are aligned with those recognized by the Green Bond Principles 2021 and the ASEAN Green Bond Standards 2018. 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 6 and 7. 

PROJECT EVALUATION / SELECTION

PUB has established the Sustainability Committee, which is co-chaired by deputy chief executives and supported by a number of department directors, to oversee the project evaluation and selection. PUB 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 PUB’s risk management system to be adequate and the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

PUB’s Finance Department will oversee the management of proceeds on a portfolio basis via a green bond register, with oversight from the CFO. PUB intends to fully allocate net proceeds within three years of issuance. Pending full allocation, unallocated proceeds will be held in cash instruments in accordance with PUB’s approved cash investment policy. This is in line with market practice. 

REPORTING

PUB intends to report on allocation of proceeds on its website annually until full allocation. Allocation reporting may include the amount of allocated proceeds by eligible category, the description of eligible green projects as well as the share of financing versus refinancing. Impact reporting may include relevant environmental impact indicators. Sustainalytics views PUB’s allocation and impact reporting as aligned with market practice.