Second-Party Opinion Download

Sustainalytics is of the opinion that the Vesteda Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds is aligned with the categories recognized by the Green Bond Principles and Green Loan Principles. Sustainalytics is of the opinion that investments in green buildings and energy efficiency improvements in the residential real estate market in the Netherlands will lead to positive environmental impacts and advance the UN Sustainable Development Goals (7) Affordable and Clean Energy and (11) Sustainable Cities and Communities.

PROJECT EVALUATION/SELECTION

Vesteda has established a Green Finance Framework Group composed of company managers to carry out the evaluation and selection process. On at least an annual basis the group will evaluate existing and potential eligible assets to determine whether they meet the framework criteria. Eligible assets will be added to the portfolio and on a quarterly basis a compliance report will be developed by the treasury manager and sent to Vesteda’s Risk Committee to verify compliance. This is aligned with market practice.

MANAGEMENT OF PROCEEDS

Vesteda’s treasury department will manage proceeds on a portfolio basis. Pending full allocation of proceeds, unallocated funds will be managed according to treasury criteria. If assets are no longer eligible, Vesteda will remove the asset from the portfolio and will aim to replace it as soon as feasible. This is aligned with market practice.

REPORTING

Vesteda intends to prepare an investor report on allocation of proceeds on an annual basis. The report will include the allocation of proceeds to the portfolio of eligible assets, including a breakdown of allocation to specific use of proceeds categories; the total outstanding volume of green finance instruments issued under the framework, the share of financing and refinancing and average lookback period; and, if necessary, the total unallocated amount. In addition, Vesteda is committed to reporting on relevant impact metrics. Vesteda’s allocation and impact reporting are aligned with market practice.