Project Details
Project
Electricity Supply Board (ESB) Green Bond Framework Second-Party Opinion
Client
Electricity Supply Board (ESB)
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Ireland
Evaluation Date
May 2019
Evaluation Summary
Sustainalytics is of the opinion that the ESB Green Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds (Renewable Energy, Energy Efficiency, Clean Transportation and Green Buildings) are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that green projects in the areas of renewable energy, low carbon transport and green buildings to have positive environmental impacts and to advance the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
ESB has established a dedicated Green Finance Committee, including the Head of ESB’s Treasury, Sustainability and Strategy Areas and representatives from ESB’s Business Units, which will ensure compliance with the Green Bond Framework and oversee the totality of the issuance process. The Green Finance Committee is responsible for reviewing the proposed projects with respect to the Eligibility Criteria and ensuring that the requirements of ESB’s environmental risk management procedures have been applied to selected projects. Sustainalytics is of the opinion that this process is in line with market standards.
MANAGEMENT OF PROCEEDS
ESB will set up a register and internal controls to monitor and track the net proceeds allocated to Eligible Projects. ESB will allocate an amount equal to the green bond net proceeds towards eligible green projects. The company will also strive to reach full allocation to eligible projects within two years of the Green Bond issuance. Sustainalytics considers this process to be in accordance with market practice.
REPORTING
ESB commits to producing, at least annually, an allocation and impact report either as a stand alone dedicated report or integrated into ESB’s existing annual sustainability report, which will be made available via the company’s website. Sustainalytics views the scope of reporting on both allocation and impact to be adequate and considers ESB’s approach to reporting to be in accordance with market practice.