Project Details
Project
Western Australia Treasury Corporation Sustainability Bond Framework Second Party Opinion (2025)
Client
Western Australian Treasury Corporation
Project Type
Sustainability Bond/Loan
Industry Group
Sub-Sovereign
Use of Proceeds
Water/waste water management; Renewable energy; Energy efficiency; Clean transport; Pollution prevention and control; Climate change adaptation; Natural resources/land use management; Conservation; Circular economy adapted products, production technologies and processes; Green buildings; Access to essential services; Affordable basic infrastructure; Affordable housing; Employment generation and Socio-economic empowerment; Socio-economic advancement;
Location
Australia
Evaluation Date
Feb 2025
Evaluation Summary
Sustainalytics is of the opinion that the Western Australian Treasury Corporation
Sustainability Bond Framework is credible and impactful and aligns with the
Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond
Principles 2023. This assessment is based on the following:
USE OF PROCEEDS:
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impact and advance the UN Sustainable Development Goals specifically SDGs 1, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15.
PROJECT EVALUATION AND SELECTION:
The Western Australian Government’s Climate Action and Environment Portfolio Oversight Group (POG) is responsible for evaluating and selecting projects in accordance with the Framework’s eligibility criteria. The Western Australian Treasury Corporation (WATC) coordinates the Sustainability Bond Working Group, which supports the POG. Additionally, WATC has confirmed that the Western Australian Government undertakes robust environmental and social risk assessments and reporting for all allocation decisions made under the Framework. Sustainalytics considers the risk assessment and project selection process in line with market practice.
MANAGEMENT OF PROCEEDS:
The Western Australian Government’s Strategic Information Management System (SIMS) will be used for managing and tracking proceeds. WATC monitors outputs from the SIMS and intends to allocate all proceeds to eligible projects within 24 months of issuance. Pending allocation, proceeds will be temporarily invested in cash or cash equivalents, such as short-term money market instruments, subject to the exclusionary criteria in the Framework. This is in line with market practice.
REPORTING:
WATC will report on the allocation of proceeds through a publicly available Sustainability Bond Report on an annual basis. In addition, WATC is committed to reporting on relevant impact metrics. Sustainalytics views WATC’s allocation and impact reporting as aligned with market practice.
USE OF PROCEEDS:
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impact and advance the UN Sustainable Development Goals specifically SDGs 1, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15.
PROJECT EVALUATION AND SELECTION:
The Western Australian Government’s Climate Action and Environment Portfolio Oversight Group (POG) is responsible for evaluating and selecting projects in accordance with the Framework’s eligibility criteria. The Western Australian Treasury Corporation (WATC) coordinates the Sustainability Bond Working Group, which supports the POG. Additionally, WATC has confirmed that the Western Australian Government undertakes robust environmental and social risk assessments and reporting for all allocation decisions made under the Framework. Sustainalytics considers the risk assessment and project selection process in line with market practice.
MANAGEMENT OF PROCEEDS:
The Western Australian Government’s Strategic Information Management System (SIMS) will be used for managing and tracking proceeds. WATC monitors outputs from the SIMS and intends to allocate all proceeds to eligible projects within 24 months of issuance. Pending allocation, proceeds will be temporarily invested in cash or cash equivalents, such as short-term money market instruments, subject to the exclusionary criteria in the Framework. This is in line with market practice.
REPORTING:
WATC will report on the allocation of proceeds through a publicly available Sustainability Bond Report on an annual basis. In addition, WATC is committed to reporting on relevant impact metrics. Sustainalytics views WATC’s allocation and impact reporting as aligned with market practice.
https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/western-australia-treasury-corporation-sustainability-bond-framework-second-party-opinion-(2025).pdf?sfvrsn=f78d6f9a_1