Second-Party Opinion Download

Sustainalytics is of the opinion that the City of Toronto Social Debenture Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Social and Affordable Housing, (ii) Affordable Basic Infrastructure, (iii) Access to Essential Services, and (iv) Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Social Bond Principles that seek to achieve positive socioeconomic outcomes for target populations. Sustainalytics considers that the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 3, 4, 6, 8, 9, and 11.

PROJECT EVALUATION/SELECTION

The Capital Markets Division (CMD), in consultation with internal and external expert stakeholders, will be in charge of selecting eligible Social Projects that comply with selection criteria and the City’s laws and regulations. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

The Accounting Services Division will be responsible for keeping track of funding status and funding allocation to each project. Proceeds will be directly applied to projects at the time of issuance, and where substantial completion has not been met on a Social Project, funds will be invested and held in a City account. Sustainalytics is of the opinion that the City of Toronto’s processes for management of proceeds is in line with market practice.

REPORTING

The City of Toronto intends to publish a newsletter that will report on the allocation proceeds on an annual basis and until full allocation on its website. In addition, the City of Toronto is committed to reporting on relevant impact metrics. Sustainalytics views the City of Toronto’s allocation and impact reporting as aligned with market practice.