Project Details
Project
SIGNA Development Selection AG Green Finance Framework Second-Party Opinion (2021)
Client
SIGNA Development Selection AG
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Austria
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the SIGNA Development Selection AG Green Finance Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Renewable Energy, and Clean Transportation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7 and 11.
PROJECT EVALUATION / SELECTION
SIGNA Development’s internal process in evaluating and selecting projects is managed by the Green Finance Committee (GFC) which is comprised of members of the Group Management Board, and relevant senior managers. The GFC has the responsibility to oversee the evaluation and selection process. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
SIGNA Development’s process for management of proceeds is overseen by the Head of ESG Strategy & Sustainable Finance. SIGNA Development will establish a new registry to track allocation of net proceeds to a Green Portfolio of assets. SIGNA Development will strive to fully allocate the net proceeds of any Green Finance Instruments within 36 months of the date of issuance. Pending full allocation, SIGNA Development will hold unallocated proceeds in cash, cash equivalents, or debt refinancing in line with internal policies. This is in line with market practice.
REPORTING
SIGNA Development is committed to reporting on the allocation and impact of its proceeds annually on its website until full allocation. The allocation reporting may include details such as the list of eligible green projects financed and or/refinanced, allocation of the net proceeds of its green financing, share of proceeds used for financing and re-financing, and the remaining balance of unallocated proceeds. In addition, SIGNA Development will, where feasible, report on relevant impact metrics. This is in line with market practice.