Project Details
Project
Toyota Motor Credit Corporation Green Bond Framework Second-Party Opinion (2021)
Client
Toyota Motor Credit Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
May 2021
Evaluation Summary
Sustainalytics is of the opinion that the Toyota Motor Credit Corporation Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Clean Transportation, is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that providing financing to the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 11: Sustainable Cities and Communities.
PROJECT EVALUATION / SELECTION
TMCC has established an Eligibility Criteria to finance new retail loan and lease contracts for current and future Toyota and Lexus vehicles, model year 2020 or later. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
TMCC will deposit green bond proceeds into one or more segregated accounts which will be managed by its Treasury Team. Pending allocation, proceeds may be invested in money market instruments. This is in line with market practice.
REPORTING
TMCC intends to publish monthly reports on the allocation of proceeds until full allocation. In addition, TMCC will engage an independent accounting firm to review the Use of Proceeds reports, and TMCC will publish a one-time impact report approximately one year following the bond settlement providing a quantitative estimate of the lifetime reduction in carbon emissions achieved by the green bond proceeds. Sustainalytics views TMCC’s allocation and impact reporting as aligned with market practice.