Project Details
Project
Trinity Industries, Inc. Green Financing Framework Second-Party Opinion (2025)
Client
Trinity Industries, Inc.
Project Type
Green Bond/Loan
Industry Group
Transportation
Use of Proceeds
Clean transport; Circular economy adapted products, production technologies and processes; Renewable energy; Energy efficiency; Pollution prevention and control; Water/waste water management;
Location
U.S.
Evaluation Date
Jun 2025
Evaluation Summary
Sustainalytics is of the opinion that the Trinity Industries, Inc. Green Financing Framework is credible, impactful and aligned with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2025. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Low Carbon Transportation; Eco-Efficient and/or Circular Economy Adapted Products, Production Technologies and Processes; Renewable Energy; Energy Efficiency; Pollution Prevention and Control; and Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9 and 12.
PROJECT EVALUATION AND SELECTION
Representatives from Trinity’s Treasury, Legal, Sustainability and Capital Markets teams will be responsible for evaluating and selecting projects in line with the eligibility criteria under the Framework, while the Chief Financial Officer, Chief Compliance Officer and Head of Capital Markets will provide the final approval for the selected projects. Trinity has adopted internal policies and processes to address environmental and social risks associated with the financed projects. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Trinity’s Capital Markets, Treasury and Accounting teams will be responsible for tracking and managing proceeds using internal systems. Trinity intends to allocate proceeds within 36 months of issuance. Pending full allocation, unallocated proceeds will be held in cash or cash equivalents, invested as per the company’s liquidity management policies, or be used to repay existing debt that is not directly linked to carbon-intensive activities. This is in line with market practice.
REPORTING
Trinity commits to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting may include the amount of proceeds allocated to each category and the share of financing versus refinancing. In addition, Trinity intends to report on relevant impact metrics. Sustainalytics views Trinity’s allocation and impact reporting as aligned with market practice.