Project Details
Project
Farys Green Finance Framework Second-Party Opinion (2024)
Client
Farys
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Water/waste water management; Energy efficiency; Green buildings; Renewable energy; Clean transport;
Location
Belgium
Evaluation Date
Apr 2024
Evaluation Summary
Sustainalytics is of the opinion that the Farys 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 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Sustainable Water and Wastewater Management, Energy Efficiency, Green Buildings, Renewable Energy, and Clean Transportation – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9 and 11.
PROJECT EVALUATION AND SELECTION
Farys’ Management Committee will be responsible for evaluating and selecting projects and assets in line with the Framework’s eligibility criteria. The Management Committee will also oversee an ESG risk management process to identify and mitigate environmental and social risks associated with projects and activities that may be financed under the Framework. Sustainalytics considers Farys’ risk management systems to be adequate, and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Farys’ Finance and Transaction department will be responsible for the management and allocation of proceeds using a portfolio approach and will track the allocation of proceeds using an internal tracking system. Farys intends to fully allocate the net proceeds within 24 months of issuance. Unallocated proceeds may be temporarily held in cash or cash equivalents, in accordance with its treasury criteria. Based on the use of a tracking system and the disclosure of the temporary use of proceeds. Sustainalytics considers this process to be in line with market practice.
REPORTING
Farys will report on allocation of proceeds and impact on an annual basis until full allocation. Allocation reporting may include, an overview of the instruments issued under the Framework, the total amount outstanding of issued finance instruments, the total amount of investments and expenditures in the eligible assets on the balance sheet, and the amount of unallocated proceeds. Sustainalytics considers this process to be in line with market practice.