Project Details
Project
Suzano Green Financing Framework Second-Party Opinion (2024)
Client
Suzano Papel e Celulose
Project Type
Green Bond/Loan
Industry Group
Paper & Forestry
Use of Proceeds
Natural resources/land use management; Renewable energy; Energy efficiency; Climate change adaptation; Water/waste water management; Pollution prevention and control; Clean transport; Eco-efficient products;
Location
Brazil
Evaluation Date
Nov 2024
Evaluation Summary
Sustainalytics is of the opinion that the Suzano Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories – Environmentally Sustainable Management of Living Natural Resources - Land Use and Terrestrial and Aquatic Biodiversity Protection; Renewable Energy; Energy Efficiency; Climate Change Adaption; Sustainable Water and Wastewater Management; Pollution Prevention and Control; Clean Transportation and Eco-efficient and/or circular economy adapted products, production technologies and processes – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12, 13 and 15.
PROJECT EVALUATION AND SELECTION
Suzano’s Investment Committee and Sustainability Department will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria, with the final approval for all projects granted by the Investment Committee. Both teams will also be responsible for assessing the potential negative environmental and social impacts of the financed projects as per Suzano’s risk management policies. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Suzano’s Treasury Department will be responsible for the management of proceeds and will track their allocation using the Company’s internal systems. Suzano intends to allocate proceeds within 72 months of each issuance. Pending full allocation, unallocated proceeds may be held in cash or liquid investments or used to repay outstanding debt not associated with carbon-intensive activities. Sustainalytics considers it good practice to allocate the proceeds within 36 months of issuance and considers Suzano’s use of a tracking system and disclosure on the temporary use of proceeds to be in line with market practice.
REPORTING
Suzano commits to report on allocation of proceeds in a Green Financing Instrument Report published on its website, on an annual basis until full allocation. Allocation reporting will include a description of the financed projects, the amount of proceeds allocated to each project or category and share of financing versus refinancing. In addition, Suzano commits to report on relevant impact metrics. Sustainalytics views Suzano’s allocation and impact reporting as aligned with market practice.