Second-Party Opinion Download

Sustainalytics is of the opinion that the New Zealand Sovereign Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS - The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the 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, 14 and 15

PROJECT EVALUATION AND SELECTION - The New Zealand Treasury will conduct the initial evaluation and selection of potential eligible projects. The cross-agency Green Bond Committee will be responsible for the final endorsement of the eligible projects. The New Zealand Government has processes to identify and mitigate common environmental and social risks. This is in line with market practice.

MANAGEMENT OF PROCEEDS - The New Zealand Treasury will be responsible for tracking, monitoring and allocation of proceeds through an internal tracking mechanism, under oversight of the Green Bond Committee. Pending allocation or reallocation, proceeds will be deposited as cash into an account with the Reserve Bank of New Zealand. The Treasury will ensure that an amount equivalent to the proceeds is fully allocated to eligible projects within two financial years following the financial year of issuance. The New Zealand Government confirmed that unallocated proceeds will not be invested in carbon-intensive assets. This is in line with market practice.

REPORTING - The New Zealand Government will report annually on allocation of proceeds and corresponding impacts within two years from issuance and annually thereafter until full allocation, on its website. Allocation reporting may include a breakdown of net proceeds, allocated amounts and the remaining balance of unallocated proceeds. Impact reporting will include at least one performance indicator for each use of proceeds category. Sustainalytics views the New Zealand Government’s allocation and impact reporting as aligned with market practice.