Project Details
Project
Toyota Motor Credit Corporation Green Bond Framework Second-Party Opinion
Client
Toyota Motor Credit Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jan 2020
Evaluation Summary
Sustainalytics is of the opinion that the Toyota Motor Credit Corporation 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 eligible category for the use of proceeds, clean transportation, is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that financing Eligible Vehicles will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically goal 11 – Sustainable Cities and Communities.
PROJECT EVALUATION/SELECTION
TMCC has pre-selected Eligible Vehicles belonging to model year 2019 or later, which will be financed by new retail loan or lease contracts from the green bond proceeds. This is in line with market practice.
MANAGEMENT OF PROCEEDS
TMCC will deposit funds into one or more segregated accounts which will be managed by its Treasury team. Unallocated amounts may be invested in money market instruments. This is in line with market practice.
REPORTING
TMCC intends to report on the allocation of proceeds on a monthly basis and 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 a 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.