Project Details
Project
Comforia Residential REIT Green Bond Second-Party Opinion
Client
Comforia Residential REIT
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Japan
Evaluation Date
Jul 2020
Evaluation Summary
Sustainalytics is of the opinion that the Comforia Residential REIT, Inc. (“CRR” or the “Investment corporation”) Green Bond Framework (The “Framework”) aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds Green Buildings, is aligned with those recognized by the GBP. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals (SDGs), specifically SDG 9.
PROJECT EVALUATION/SELECTION
CRR’s projects will be evaluated and selected by the Investment Committee of TLC REIT Management Inc. (TRM), the asset manager for the Investment corporation. The TRM Investment Committee is composed of the President & CEO, Director, and General Managers of relevant departments and divisions. CRR’s process for evaluating and selecting projects is in line with market practices.
MANAGEMENT OF PROCEEDS
CRR's green bond proceeds will be tracked annually by TRM using an internal file, as long as the green bonds are outstanding. TRM will ensure that the amount of outstanding green bonds do not exceed the sum of the total book value of Eligible Green Projects and cost of refurbishments that meet the Eligibility Criteria. Pending allocation, unallocated funds will be held in cash or cash equivalents. The Investment corporation’s process to manage proceeds is in line with market practices.
REPORTING
CRR has committed to disclose annually, on its website, an allocation report until the proceeds are fully allocated as well as an impact report as long as the green bonds are outstanding. The disclosure on allocation will include the amount of financing and refinancing of Eligible Green Projects and/or refurbishments, the amount of unallocated proceeds, allocation schedule, and the method to manage unallocated proceeds. As environmental impact metrics, qualitative metrics such as green building certifications and levels achieved and quantitative metrics such as energy consumption will be disclosed. Sustainalytics considers the Investment corporation’s reporting to be in line with market practices.