Project Details
Project
VIVAQUA Green Finance Framework Second-Party Opinion (2025)
Client
VIVAQUA
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Water/waste water management; Pollution prevention and control; Natural resources/land use management; Sustainable aquaculture/fisheries; Energy efficiency; Renewable energy;
Location
Belgium
Evaluation Date
Jan 2025
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Sustainable Water and Wastewater Management, Pollution Prevention and Control, Terrestrial and Aquatic Biodiversity, Energy Efficiency and Renewable Energy – 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, 12 and 15.
PROJECT EVALUATION AND SELECTION
VIVAQUA’s Green Finance Committee will be responsible for the evaluation and selection of projects in line with the Framework’s eligibility criteria. The committee comprises the CEO, the CFO, the Head of Investments and the Head of the Green Team. The committee will undertake an environmental and social risk analysis to evaluate and manage the environmental and social risks associated with the eligible projects. Sustainalytics considers the project selection and evaluation process to be in line with market practice.
MANAGEMENT OF PROCEEDS
VIVAQUA’s Treasury and Accounting departments will be responsible for the management of proceeds using a balance sheet approach and will track their allocation to eligible projects through an internal accounting system. VIVAQUA intends to fully allocate net proceeds at issuance or at most within 24 months of issuance. Unallocated proceeds will be temporarily held in cash or cash equivalents, in accordance with VIVAQUA’s treasury criteria. This is in line with market practice.
REPORTING
VIVAQUA will report on the allocation of proceeds and corresponding impacts on an annual basis until the maturity of the green finance instruments and will make the reports publicly available on its website. Allocation reporting will include: i) the aggregate amount of issued green finance instruments; ii) the total amount of assets in the eligible green assets on the balance sheet; and iii) the amount of unallocated proceeds, if any. In addition, VIVAQUA intends to report on relevant impact metrics. Sustainalytics views VIVAQUA’s allocation and impact reporting as aligned with market practice.