STT GDC Pte Ltd Sustainability-Linked Financing Framework Second-Party Opinion (2024)

Project Details

Project

Client

ST Telemedia Global Data Centres

Project Type

Sustainability Linked Loan

Industry Group

Real Estate

Use of Proceeds

N/A

Location

Singapore

Evaluation Date

Aug 2024

Evaluation Summary

Sustainalytics is of the opinion that the STT GDC Pte Ltd Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2023 and the Sustainability-Linked Loan Principles 2023. This assessment is based on the following:

Selection of Key Performance Indicators - The STT GDC Pte Ltd Sustainability-Linked Financing Framework defines three KPIs: i) Percentage of renewable energy in total electricity consumption; ii) Scope 1 and 2 carbon intensity (tCO2e/SGD million revenue); and iii) Percentage of data centres certified under recognized green building certification schemes. (see Table 1). Sustainalytics considers KPI 1 to be strong and KPIs 2 and 3 to be adequate based on their materiality, relevance, scope of applicability and comparability to external benchmarks.

Calibration of Sustainability Performance Targets : Sustainalytics considers the SPTs to be aligned with STT GDC’s sustainability strategy. Sustainalytics further considers SPT 1 and 3 to be ambitious; and SPT 2 to be moderately ambitious based on the comparison with past performance, peer performance and science-based trajectories, as applicable.

Financial Characteristics : STT GDC will link the financial characteristics of the sustainability-linked instruments to the achievement of the SPTs. The financial characteristics may include a variation in the coupon rate, redemption price or margin adjustment.

Reporting : STT GDC commits to report on its progress on the KPIs on an annual basis in its ESG report which will be published on its website. STT GDC further commits to disclose relevant information enabling investors to monitor the level of ambition of the SPTs.

Verification : STT GDC commits to have external limited assurance conducted against each SPT for each KPI at least once a year and publish the verification report on its website.