Project Details
Project
Specialfastigheter Green Bond Framework Second-Party Opinion (2024)
Client
Specialfastigheter
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings
Location
Sweden
Evaluation Date
Nov 2024
Evaluation Summary
Sustainalytics is of the opinion that the Specialfastigheter Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.
PROJECT EVALUATION AND SELECTION
Specialfastigheter has established a Green Bond Committee which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The committee convenes at least once annually and consists of members from the Finance, Sustainability and Project Development departments. Specialfastigheter has internal ESG policies to monitor and mitigate environmental and social risks associated with the projects. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Specialfastigheter’s Finance department will be responsible for the management of proceeds and will track their allocation in a spreadsheet using a portfolio approach. The Company intends to allocate proceeds within 12 months of each issuance. Pending full allocation, unallocated proceeds will be held as cash in Specialfastigheter’s ordinary bank account. This is in line with market practice.
REPORTING
Specialfastigheter will report on the allocation of proceeds and the corresponding impacts in a Green Bond Investor Report, which will be published on its website until full allocation and in the event of any material developments. Allocation reporting will include the total amount of green bonds outstanding, the balance of eligible assets in the portfolio, a breakdown by eligible asset category, the share of financing versus refinancing, the share of unallocated proceeds. Sustainalytics views Specialfastigheter’s allocation and impact reporting as aligned with market practice.