Second-Party Opinion Download

Sustainalytics is of the opinion that the South Central Connecticut Regional Water Authority (the Authority) Green Bond 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 category for the use of proceeds – Sustainable Water Management (Drinking Water Infrastructure Upgrades) – is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers the eligible category to have positive environmental impact and to advance the UN Sustainable Development Goal 6 (Clean Water and Sanitation).

PROJECT EVALUATION/SELECTION

The Authority has selected the eligible Great Hill Tunnel and Pipeline Restoration project, based on its assessment against several criteria that required involvement of cross-functional teams of internal and external stakeholders, as well as the Authority’s governing boards who oversaw and approved the project. Sustainalytics considers the Authority’s project selection process to be in line with market best practice.

MANAGEMENT OF PROCEEDS

The Authority intends to immediately allocate the amount equal to net proceeds of the green bond to the eligible project, followed by the final review of use of net proceeds by C-level and executive management. This is in line with market best practice.

REPORTING

The Authority intends to publish a report on the Electronic Municipal Market Access (EMMA) website. The reporting will include the amount allocated to eligible project and description of project funded, as well as potential ramifications prevented (if the project was not undertaken) as an impact metric. Sustainalytics considers the Authority’s allocation and impact reporting to be in line with market practice.