Project Details
Project
University of Hull Green Finance Framework Second-Party Opinion (2022)
Client
The University of Hull
Project Type
Green Bond/Loan
Industry Group
Education
Use of Proceeds
Renewable energy; Clean transport; Green buildings; Water/waste water management; Energy efficiency; Natural resources/land use management; Pollution prevention and control;
Location
U.K.
Evaluation Date
Feb 2022
Evaluation Summary
Sustainalytics is of the opinion that the University of Hull 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 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Pollution Prevention & Control, Clean Transportation, Sustainable Water & Wastewater Management and Living Natural Resources & Land Use – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to support the transition to a low-carbon economy and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 11 and 12.
PROJECT EVALUATION / SELECTION
The University of Hull’s Capital Investment Committee, chaired by its Chief Finance Officer and reporting to the University Leadership Team, is responsible for evaluating and selecting projects in line with the eligibility criteria. The University of Hull undertakes ESG analyses and environmental and social impact assessments per project. Sustainalytics considers the risk management system to be adequate and the selection process as in line with market practice.
MANAGEMENT OF PROCEEDS
The University of Hull will deposit the net proceeds in an isolated account and intends to allocate the proceeds within three years of issuance. Pending allocation, proceeds will temporarily be held as cash deposits or in sterling denominated money market funds in accordance with the University of Hull’s treasury management policy or used for short-term debt repayment. This is in line with market practice.
REPORTING
The University of Hull intends to report on the allocation of proceeds in a sustainability report that will be published on its website on an annual basis. Allocation reporting will include the amount and description of proceeds allocated to each project, the balance of unallocated proceeds and a description of the temporary treatment of such proceeds, among other information. In addition, the University of Hull is committed to reporting on relevant impact metrics. Sustainalytics views the University of Hull’s allocation and impact reporting as aligned with market practice.