Project Details
Project
Whitbread Green Bond Framework Second-Party Opinion
Client
Whitbread PLC
Project Type
Green Bond/Loan
Industry Group
Consumer Services
Use of Proceeds
Natural resources/land use management; Pollution prevention and control; Renewable energy; Clean transport; Green buildings; Energy efficiency;
Location
U.K.
Evaluation Date
Jan 2021
Evaluation Summary
Sustainalytics is of the opinion that the Whitbread Green Bond Framework is credible and impactful and aligns with the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 11, and 12.
PROJECT EVALUATION/SELECTION
Whitbread’s internal process in evaluating and selecting projects will be managed by the Sustainable Finance Committee (the “Committee”), which will be chaired by the Group Finance Director and will include members such as the General Counsel, Group Commercial Director and Managing Director Premier Inn and Restaurants, and the Group Operations Director. The Committee will be supported by the sustainability team, finance team, property and construction team, and the procurement team. The Committee will be responsible for final approval of annual updates to the Framework, eligibility of bond issuance, selection of projects, management of projects and reporting of use of proceeds and impact. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Whitbread’s processes for management of proceeds is overseen by the Finance department. Proceeds and eligible projects will be tracked using a register and allocated on a portfolio basis within 36 months. Should any proceeds remain unallocated, the Company will hold or invest the balance in line with its treasury liquidity portfolio or to the extent it repays loans it will not repay any loans which were used for heavily polluting or emission intensive activity. Sustainalytics considers Whitbread’s Management of proceeds in line with market practice.
REPORTING
Whitbread intends to report on allocation of proceeds on its website, on an annual basis, until full bond allocation. The allocation report will include details such as the allocation of net proceed on a project category basis. Where feasible, Whitbread may report on an annual basis on several environmental impact metrics directly associated with the project categories. Sustainalytics views Whitbread’s allocation and impact reporting as aligned with market practice