Second-Party Opinion Download

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

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Affordable Housing, and Socio-economic Advancement and Empowerment – 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 positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 8, 9, 11 and 12. 

PROJECT EVALUATION AND SELECTION

Richmond Housing Partnership’s Sustainability Panel will evaluate and select projects in accordance with the eligibility criteria defined under the Framework. Richmond Housing Partnership has in place a sustainability risk management system to address the environmental and social risks associated with assets financed, which is applicable to all allocation decisions made under the Framework. The Panel is responsible for oversight of associated risks and meets on a quarterly basis to implement necessary systems to mitigate the risks. Sustainalytics considers this to be in line with market practice.  

MANAGEMENT OF PROCEEDS

Richmond Housing Partnership’s Sustainability Panel will track, manage and allocate the proceeds to eligible assets under the Framework. Richmond Housing Partnership will use an internal sustainability asset register with oversight from the Panel to track and monitor the net proceeds. Richmond Housing Partnership intends to allocate all proceeds to eligible assets within 24 months of the issuance. Richmond Housing Partnership will temporarily hold pending allocations in cash equivalents or use them for short-term repayment of other debt facilities in accordance with its Treasury Management Policy. This is in line with market practice.

REPORTING

Richmond Housing Partnership intends to report on the allocation of proceeds until full allocation in its Annual ESG Report on an annual basis. Richmond Housing Partnership will publish the report on its website. Allocation reporting will include the list of eligible green and social projects, a description of the assets, the amount of proceeds allocated, the amount of unallocated proceeds and the amount of net proceeds outstanding from the instruments. In addition, Richmond Housing Partnership commits to reporting on relevant impact metrics. Sustainalytics views Richmond Housing Partnership’s allocation and impact reporting as aligned with market practice.