Project Details
Project
Port of Los Angeles Green Bond Framework Second-Party Opinion
Client
The Port of Los Angeles
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jul 2019
Evaluation Summary
Sustainalytics is of the opinion that the Port of Los Angeles (“the Port”) Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The green categories for eligible use of proceeds – (i) Renewable Energy, (ii) Green Buildings, (iii) Clean Transportation, (iv) Pollution Prevention and Control, and (v) Terrestrial and Aquatic Biodiversity Conservation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers the eligible categories to have positive environmental impact and to advance the UN Sustainable Development Goals, specifically 7, 11, 12, and 15.
PROJECT EVALUATION/SELECTION
The Port selected projects based on their commercial feasibility, eligibility and alignment with their internal environmental management program. The Port also confirmed that all projects require that the relevant Environmental Impact Review and stakeholder consultation must conclude negligible environmental disruption. Sustainalytics considers the Port’s project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Port intends to refund outstanding bond amounts related to eligible projects. Net Proceeds will be applied to redeem the outstanding bonds within 90 days. Sustainalytics considers this to be in line with market practice.
REPORTING
The Port has reported amounts to be allocated to each eligible project along with details of impact indicators associated with each eligible category within the Framework. Reporting is aligned with market practice.