Project Details
Project
Zenith Green Financing Framework Second-Party Opinion (2021)
Client
Zenith Automotive Holdings Limited
Project Type
Green Bond/Loan
Industry Group
Automobiles
Use of Proceeds
Clean transport
Location
U.K.
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that the Zenith Green Financing Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – Clean Transportation – is aligned with those recognized by the Green Bond Principles and Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to a reduction in GHG emissions from road transportation by financing electric mobility in the UK and advance the UN Sustainable Development Goals (SDGs), specifically SDG 11.
PROJECT EVALUATION / SELECTION
Zenith Automotive Holdings Limited’s Green Financing Working Group will be responsible for evaluating and selecting eligible projects in line with the Framework’s eligibility criteria under oversight from the Deputy Chief Financial Officer. Zenith Automotive Holdings Limited’s group-level environmental and social risk mitigation processes are applicable for all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Zenith Automotive Holdings Limited’s Finance Team will be responsible for the management and allocation of proceeds to eligible projects. The team will track the net proceeds using a Green Financing Register and intends to allocate all proceeds to eligible instruments within 24 months of issuance. Pending allocation, proceeds may be temporarily held in cash or other short-term instruments. Sustainalytics considers this process to be in line with market practice.
REPORTING
Zenith Automotive Holdings Limited intends to report on the allocation of proceeds in its Annual Report and Accounts on its website annually until full allocation. Allocation reporting will include the size of the eligible expenditure portfolio, the share of financing versus refinancing and the balance of unallocated proceeds. In addition, Zenith Automotive Holdings Limited is also committed to reporting on relevant impact metrics. Sustainalytics views Zenith Automotive Holdings Limited’s allocation and impact reporting as aligned with market practice.