Project Details
Project
Alpha Trains Green Finance Framework Second-Party Opinion (2022)
Client
Alpha Trains
Project Type
Green Bond/Loan; EU Taxonomy Assessment;
Industry Group
Transportation
Use of Proceeds
Clean transport
Location
Luxembourg
Evaluation Date
Oct 2022
Evaluation Summary
Sustainalytics is of the opinion that the Alpha Trains Green Finance 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 the Green Loan Principles. Sustainalytics considers that the eligible category is expected to contribute to a reduction in carbon emissions by supporting the transition towards low-carbon rail transport and advancing the UN Sustainable Development Goals, specifically SDGs 9 and 11.
PROJECT EVALUATION / SELECTION
Alpha Trains’ Green Finance Committee will be responsible for evaluating and selecting projects in line with the eligibility criteria. Alpha Trains has in place a risk management system that ensures the identification, assessment and mitigation of material ESG risks and is applicable to all investment decisions including allocations under the Framework. Sustainalytics considers this risk management system to be adequate and the project evaluation and selection process to be aligned with market practice.
MANAGEMENT OF PROCEEDS
Alpha Trains’ Investment Funding and Treasury department will be responsible for the management of proceeds using a portfolio approach. Alpha Trains intends to allocate all proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be held in cash or cash equivalents. Sustainalytics considers this to be in line with market practice.
REPORTING
Alpha Trains commits to report on the allocation of proceeds in its Investor Report on its website and sustainability report on an annual basis until maturity. Allocation reporting will include the amount of unallocated proceeds, the size of the green portfolio, the composition by eligible green asset categories and the share of financing versus refinancing. In addition, Alpha Trains is committed to reporting on relevant impact metrics such as GHG emissions reduced and avoided (measured in tCO2e per year) and the number of eligible rolling stock deployed. Sustainalytics views Alpha Trains’ allocation and impact reporting commitment as aligned with market practice.