Project Details
Project
RHG Enertürk Enerji Green Financing Framework Second-Party Opinion (2022)
Client
RHG Enertürk Enerji
Project Type
Green Bond/Loan
Industry Group
Energy Services
Use of Proceeds
Clean transport; Renewable energy; Energy efficiency;
Location
Türkiye
Evaluation Date
Nov 2022
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency and Clean Transportation – 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 impact and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.
PROJECT EVALUATION AND SELECTION
RHG Enertürk Enerji has established a Sustainability Committee, led by the managing director and comprises participants from the Business Development, Finance and Treasury, Engineering, and Investments departments, and the Finance and Treasury department of Erciyes Anadolu Holding. Project development teams submit projects to the Sustainability Committee, which is responsible for identifying and selecting projects. Projects are reviewed by senior management and the board of directors provides final approval. RHG Enertürk Enerji’s health, safety, environment and quality department is responsible for identifying, monitoring and tracking environmental and social risks associated with all projects. This meets market expectations.
MANAGEMENT OF PROCEEDS
RHG Enertürk Enerji’s Finance and Treasury department will manage the allocation of proceeds. The Finance and Treasury departments of RHG Enertürk Enerji and Erciyes Anadolu Holding will track the proceeds through internal mechanisms. RHG Enertürk Enerji intends to allocate all proceeds within 24 months of issuance. Pending full allocation, unallocated net proceeds will be held in cash, cash equivalents or other liquid marketable instruments and managed in accordance with RHG Enertürk Enerji’s liquidity and cash management policy. This meets market expectations.
REPORTING
RHG Enerji intends to report on the allocation of proceeds and impact reporting on its website and annual report on an annual basis until full allocation. Allocation reporting will include the amount of net proceeds allocated to eligible projects, the allocated amounts to each project category, the share of financing versus refinancing and the amount of unallocated proceeds. The allocation of proceeds will be reviewed by an external financial auditor. In addition, RHG Enertürk Enerji is committed to reporting on relevant impact metrics. Sustainalytics views Enertürk’s allocation and impact reporting as meeting market expectations.