Project Details
Project
REG Green Bond Framework Second-Party Opinion (2021)
Client
Renewable Energy Group, Inc.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Apr 2021
Evaluation Summary
Sustainalytics is of the opinion that the REG Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. 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 2018. Sustainalytics considers that investment in the production of low-emissions biofuels will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.
PROJECT EVALUATION / SELECTION
REG has defined within its Framework the project which will be financed by the proceeds of the bond. Sustainalytics considers this disclosure to be in line with market expectations.
MANAGEMENT OF PROCEEDS
REG’s finance and executive teams will oversee the allocation of proceeds to the eligible project, which will occur primarily over the next two calendar years. Pending allocation, proceeds will be temporarily held in cash or equivalents, or used to repay past indebtedness. Sustainalytics considers this to be in line with market practice.
REPORTING
Renewable Energy Group, Inc. intends to report on the allocation of proceeds on its website on an annual basis, in addition to providing quantitative impact metrics related to both fuel production and avoided emissions. Sustainalytics considers this to be in line with market practice.