Project Details
Project
GLP Pte. Ltd. Green Finance Framework Second-Party Opinion
Client
GLP Pte. Ltd.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Singapore
Evaluation Date
Nov 2020
Evaluation Summary
Sustainalytics is of the opinion that the GLP Pte. Ltd. Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018, the Green Loan Principles 2020 and the ASEAN Green Bond Standards 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Green Buildings, (ii) Renewable Energy, and (iii) Clean Transportation – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7 ,9 and 11.
PROJECT EVALUATION/SELECTION
GLP’s Global ESG Committee (“GEC”), comprised of members from the Sustainability team, Finance, Treasury, and relevant Property Management units, will be in charge of project evaluation and selection based on compliance with expected eligible amounts, eligibility criteria defined in the Framework, and evidence contribution of the selected projects towards reducing CO2 emissions. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Proceeds from the green finance instruments will be managed and tracked by an internal system and through a portfolio approach, where the balance of eligible green projects that constitute the portfolio will match or exceed the balance of net proceeds from its outstanding green finance instruments. In case of any unallocated proceeds, GLP will invest in bank deposits, investment funds, money market funds or liquid marketable instruments. This is in line with market practice.
REPORTING
GLP has committed to annually disclosing its allocation of proceeds and associated environmental benefits on its website, until full allocation. Allocation reporting will contain information pertaining to the aggregated amount of allocation of the net proceeds to the Eligible Green Projects, a description or selected case studies, balance of unallocated proceeds, as well as portion of financing versus refinancing. Impact reporting will contain relevant qualitative and quantitative impact metrics such as the level of certification, annual GHG emissions avoided, and amount of renewable energy generated. Moreover, GLP is committed to receiving verification from a third party after issuance. This is in line with market practice.