Project Details
Project
SGSP Australia Assets Pty Ltd Green Finance Framework Second-Party Opinion (2021)
Client
SGSP Australia Assets Pty Ltd
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy; Energy efficiency; Clean transport; Climate change adaptation;
Location
Australia
Evaluation Date
Jul 2021
Evaluation Summary
Sustainalytics is of the opinion that the SGSP Australia Assets Pty Ltd Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation, and Climate Change Adaptation – 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 impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 9, 11 and 15.
PROJECT EVALUATION / SELECTION
SGSP Australia Assets Pty Ltd’s internal process in evaluating and selecting projects is managed by the Green Finance Working Group (“GFWG”), which is comprised of members from the Treasury, Corporate Strategy, and Group Corporate Affairs department. On an annual basis, the GFWG will review and select eligible projects according to the criteria established in the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
SGSP Australia Assets Pty Ltd’s processes for management of proceeds is overseen by the GFWG. The Company will track and monitor proceeds with an internal system, and proceeds will be allocated on a portfolio basis. The Company is committed to allocating net proceeds to Eligible Projects on a best effort basis within 24 months of the date of issuance. Unallocated proceeds may be held in the Company’s treasury liquidity portfolio in cash, cash equivalents or other money market instruments. This is in line with market practice.
REPORTING
SGSP Australia Assets Pty Ltd intends to report on allocation of proceeds on its website on an annual basis until full allocation. In addition, SGSP Australia Assets Pty Ltd is committed to reporting on relevant impact metrics. On a best-efforts basis SGSPAA intends to align impact reporting with the portfolio approach described in ICMA’s Harmonized Framework for Impact Reporting. Sustainalytics views SGSP Australia Assets Pty Ltd’s allocation and impact reporting as aligned with market practice.