Project Details
Project
Wabtec Corporation Green Finance Framework Second-Party Opinion (2021)
Client
Wabtec Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Apr 2021
Evaluation Summary
Sustainalytics is of the opinion that the Wabtec Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds defined by the Framework for green financing are aligned with those recognized by the Green Bond Principles 2018 and Green Loan Principles 2021 – Clean Transportation, Eco-efficient and/or Circular Economy Adapted Products, Production Technologies, Renewable Energy, Energy Efficiency and Pollution Prevention and Control. Sustainalytics considers that investments in the strategic areas of ‘Innovating with Purpose’ and ‘Driving Responsible Operations’ will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG Goals 7, 9, 11 and 12.
PROJECT EVALUATION / SELECTION
Wabtec has established a Green Finance Committee (“GFC”) to oversee the project evaluation and selection process. The GFC, comprised of senior representatives from Corporate Treasury, Corporate Sustainability, and the Chief Technology Office, is responsible for monitoring the Green Asset Portfolio and selecting projects that comply with the eligibility criteria. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Wabtec will manage proceeds using a Green Financing Register and will monitor and track specific allocation using internal systems and databases. Pending full allocation, Wabtec will hold and/or invest the balance of net proceeds in its treasury liquidity portfolio, or in cash or short-term and liquid instruments. Wabtec intends to allocate the proceeds of a given issuance within 24 months of issuance of the debt. In addition, it will apply a 36 month look-back period. This is in line with market practice.
REPORTING
Wabtec has committed to providing annual allocation and impact reporting in a Green Finance Report, until full allocation. Allocation reporting will include information such as the distribution of eligible asset categories financed, the balance of unallocated proceeds and the share of financing vs. re-financing, while impact reporting will draw on several relevant environmental impact metrics. Sustainalytics views Wabtec’s allocation and impact reporting as aligned with market practice.