Project Details
Project
Stack Infrastructure Sustainable Finance Framework Second-Party Opinion (2023)
Client
Stack Infrastructure
Project Type
Sustainability Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Energy efficiency; Renewable energy; Water/waste water management; Clean transport; Pollution prevention and control; Eco-efficient products; Socio-economic advancement; Employment generation and Socio-economic empowerment; Affordable basic infrastructure;
Location
U.S.
Evaluation Date
Oct 2023
Evaluation Summary
Sustainalytics is of the opinion that the STACK Infrastructure Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eight eligible categories1 for the use of proceeds are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 4, 6, 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
STACK’s Global Sustainable Finance Workstream, which includes members from the Finance and Sustainability functions from STACK and IPI, will evaluate and select eligible projects in line with the Framework’s eligibility criteria. The workstream will also assess the environmental and social risks associated with the projects financed, and where relevant, determine the risk mitigating measures. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
STACK will be responsible for tracking and managing the net proceeds. STACK has communicated to Sustainalytics that it intends to allocate all proceeds to eligible projects within 36 months of the respective issuance date of the instrument, where relevant, and will indicate the specific allocation date in the transaction documents. Pending allocation, STACK will temporarily hold net proceeds in cash or invest in short-term liquid instruments. This is in line with market practice.
REPORTING
STACK commits to report annually on the allocation of proceeds and the corresponding environmental or social impact in qualitative terms or case study reports. The allocation and impact reports may be shared directly with investors or publicly on the company’s website on an annual basis, as appropriate. Sustainalytics views STACK’s allocation and impact reporting as aligned with market practice.