Second-Party Opinion Download

Sustainalytics is of the opinion that the Puget Energy Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023 and the Social Loan Principles 2023. This assessment is based on the following:  

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation, Climate Change Adaptation, Biodiversity Conservation, Water and Wastewater Management, Pollution Prevention and Control, Green Innovation and Socio-economic Advancement – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to a positive environmental or social impact and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 10, 11, 14 and 15. 

PROJECT EVALUATION AND SELECTION

Puget Sound Energy’s ESG/Sustainability Executive Committee oversees the internal process for evaluating and selecting projects and consists of an executive management team. The Company has adopted internal processes and procedures to address environmental and social risks associated with the projects being financed. Sustainalytics considers these social and environmental risk management systems to be adequate and the selection process to aligned with market practice.  

MANAGEMENT OF PROCEEDS

Puget Sound Energy’s ESG/Sustainability Committee will be responsible for the management of proceeds. The Company intends to reach full allocation within 36 months of each issuance. Pending full allocation, net proceeds may be temporarily used for repayment of short-term indebtedness or held in cash or cash equivalents in line with liquidity polices. The Company has confirmed to Sustainalytics that the refinanced debt will not be directly associated with activities or assets that are inherently carbon intensive. This is in line with market practice.

REPORTING

The Company commits to report on the allocation and impact of proceeds, in a standalone report, on its website on an annual basis until full allocation. Allocation reporting will include the amount of net proceeds allocated to each eligible project, either individually or by category, the balance of unallocated proceeds that remain outstanding at the end of the reporting period, the share of proceeds used for financing versus refinancing and brief descriptions on selected projects. Additionally, the Company intends to report on relevant impact metrics. This is in line with market practice.