Project Details
Project
Citi Green Bond Framework Second-Party Opinion
Client
Citigroup
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jan 2019
Evaluation Summary
Sustainalytics is of the opinion that the Citi Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This opinion is based on the following:
USE OF PROCEEDS
Eligible Green Assets under the use of proceeds (renewable energy, energy efficiency, sustainable transportation, water quality and conservation, and green buildings) are aligned with those recognized by the Green Bond Principles as project categories with positive environmental benefits. Additionally, these project categories advance the UN Sustainable Development Agenda, specifically Sustainable Development Goals 6, 7, 9, and 11.
PROJECT EVALUATION/SELECTION
Eligible Green Assets are screened by the Corporate Sustainability and Environmental and Social Risk Management against Citi’s Green Bond Eligibility Criteria. Citi implements strong due diligence processes to mitigate social and environmental risks. Sustainalytics considers this selection and due diligence process to be in line with market best practice.
MANAGEMENT OF PROCEEDS
Citi’s Green Bond Asset Working, chaired by Citi’s Global Head of Corporate Sustainability will track and manage Eligible Green Assets through its global credit management system. Pending allocation, outstanding funds will be held in cash, cash equivalents and/or other liquid marketable instruments (including U.S. Treasury securities) in Citi’s liquidity portfolio until the amount can be allocated towards the Citi Green Bond Asset Portfolio. This is in line with market practice.
REPORTING
Citi has committed to allocation and impact reporting in a Green Bond Report within one year of issuance and on an annual basis. The allocation reporting will include relevant transaction data such as the allocation of proceeds to eligible projects, while the impact reporting will comprise relevant metrics for the portfolio of Eligible Green Assets. Citi commits to engage an external independent auditor to review the Citi Green Bond Asset Portfolio which Sustainalytics considers to be in line with market best practice.