Project Details
Project
Tritax EuroBox Green Finance Framework Second-Party Opinion (2021)
Client
Tritax EuroBox plc
Project Type
Green Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Green buildings; Energy efficiency;
Location
U.K.
Evaluation Date
Apr 2021
Evaluation Summary
Sustainalytics is of the opinion that the Tritax EuroBox Green Finance Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018 and 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, and Energy Efficiency – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2021. Sustainalytics considers that financing projects in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7 and 9.
PROJECT EVALUATION / SELECTION
Tritax EuroBox has designated the Green Finance Committee to act on its behalf in overseeing project evaluation and selection, and ensuring that selected assets or projects comply with the eligibility criteria. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Tritax EuroBox will manage net proceeds on a portfolio basis. The Company's Finance team will ensure there is an excess of Eligible Green Projects over the amount drawn from any Green Finance Transaction. Pending allocation, proceeds will be managed in compliance with the Group's Finance Policy and may be temporarily invested in cash and/or cash equivalents and/or liquid marketable liquidity instruments and/or towards temporary repayment of debt under the Company’s revolving credit facilities. This is in line with market practice.
REPORTING
Tritax EuroBox intends to report on the allocation of proceeds and associated impact metrics in its Annual Green Finance Report until full allocation. Allocation reporting will include amount raised and outstanding for each green finance instrument and amounts allocated to date; the percentage of net proceeds used for financing versus refinancing; the total amount in the Green Portfolio, along with a breakdown by project category; the remaining balance of unallocated proceeds: and project and asset descriptions per each project category. In addition, the Company is committed to reporting on relevant impact metrics. Sustainalytics views the Company’s allocation and impact reporting as aligned with market practice.