Project Details
Project
BPG Australian Sustainable Finance Framework Second Party Opinion (2022)
Client
Brookfield Property Group
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Energy efficiency; Renewable energy;
Location
Australia
Evaluation Date
Jun 2022
Evaluation Summary
Sustainalytics is of the opinion that Part A of the Brookfield Property Group Australian Sustainable Finance Framework is credible, impactful and aligns with the four core components of the Green Bond Principles 2021 and Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings and Energy Efficiency & Renewable Energy – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.
PROJECT EVALUATION / SELECTION
BPG’s internal process for evaluating and selecting projects will be carried out by its Green Finance Management Committee (GFMC) with final approval from the Brookfield Property Group Australia’s Portfolio Management Board. BPG has implemented adequate measures and is well positioned to manage and mitigate environmental and social risks commonly associated with the eligible categories. Sustainalytics considers these processes to be in line with market practice.
MANAGEMENT OF PROCEEDS
BPG’s GFMC will oversee the processes for management and allocation of proceeds to eligible projects are overseen by the GFMC and tracked using the Green Instrument Register. BPG intends to fully allocate proceeds within 24 months. Unallocated proceeds will be held temporarily in cash or cash equivalent instruments and liquid investments. Sustainalytics considers this process to be in line with market practice.
REPORTING
BPG intends to report on allocation of proceeds on an annual basis until full allocation. Allocation reporting will include information on eligible green projects, amount allocated to eligible green projects and the balance of unallocated proceeds. In addition, BPG is committed to reporting on relevant impact metrics. Sustainalytics views BPG’s allocation and impact reporting as aligned with market practice.