Second-Party Opinion Download

Evaluation Summary

Sustainalytics is of the opinion that the Tagehus Green Finance 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 for the use of proceeds – Green Buildings, Energy Efficiency, Circular and Eco-efficient Products, Renewable Energy, Sustainable Water and Wastewater Management, and Clean Transportation – 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 12, 6, 7, 9 and 11.

PROJECT EVALUATION AND SELECTION

Tagehus has established an Investment Committee, which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The committee consists of the CEO, CFO and COO and representatives from different departments with relevant experience. Tagehus’ risk management procedure includes a project-specific assessment of environmental and social risks. This is in line with market practice.

MANAGEMENT OF PROCEEDS

Tagehus’ Finance Department will be responsible for the management of net proceeds and will track their allocation to the Green Project portfolio using a register. The Company intends to allocate proceeds within 24 months of each issuance. Pending full allocation, unallocated proceeds will be temporarily placed in cash and money-market funds in accordance with the Frameworks’ exclusion criteria. This is in line with market practice.

REPORTING

Tagehus will report on the allocation of proceeds and the corresponding impact in a Green Finance Report, which will be published on its website on an annual basis until the maturity of the finance instruments. Allocation reporting will include the nominal amount of outstanding instruments divided into bonds and loans, the amount of net proceeds awaiting allocation, amounts allocated to each green project category, the share of financing versus refinancing and examples of green projects funded by the instruments. Sustainalytics views Tagehus’ allocation and impact reporting as aligned with market practice.