Project Details
Project
Société du Grand Paris Green Bond EMTN Programme Framework Second-Party Opinion
Client
Société du Grand Paris
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
France
Evaluation Date
Sep 2018
Evaluation Summary
Sustainalytics is of the opinion that the Société du Grand Paris Green Bond EMTN1 Programme 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 categories for the use of proceeds – (i) Construction of new electric metro lines and line extensions and (ii) Construction and development of new stations and technical centres for electric metros are aligned with those recognized by the Green Bond Principles (clean transportation). Sustainalytics considers that the company’s Grand Paris Express project is expected to support urban densification and contribute to reverse urban sprawl in the Paris Metropolitan Area, all by assisting the long-term modal shift to public transportation and curb Ile-de-France’s CO2 emissions.
PROJECT EVALUATION/SELECTION
Société du Grand Paris’ project evaluation and selection is governed by a Green Bond Committee consisting of members of the Management Board along with the company’s Finance and Environmental Engineering and Economic Studies departments. This is aligned with market practice.
MANAGEMENT OF PROCEEDS
Proceeds from the green bonds will be tracked by Société du Grand Paris’ Finance Department through its internal information systems and database. Pending full allocation, the unallocated green bond proceeds will be placed with the French Treasury and invested under its policies and guidelines. This process is aligned with market practices.
REPORTING
Société du Grand Paris commits to provide allocation and impact reporting annually on the company’s website. The (i) allocation report will comprise the allocated amounts (in millions of Euros), the breakdown by Grand Paris Express (“GPE”) line (in millions of Euros) and the project status. With regards to the (ii) impact report, Société du Grand Paris will report on a comprehensive set of performance and impact indicators such as vehicle flows avoided (modal report) or estimated energy saving (kWh). Sustainalytics assesses the company’s reporting practices as market best practice due to their scope and level of granularity.