Second-Party Opinion Download

Sustainalytics is of the opinion that the Granite REIT 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 – Green Buildings, Resource Efficiency and Management, Clean Transportation, Renewable Energy, Pollution Prevention and Control and Biodiversity and Conservation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG Goals 6, 7, 9, 11, 12 and 15.

PROJECT EVALUATION/SELECTION

Eligible projects will be assessed by a Green Bond Working Committee to ensure alignment with the Framework. The Committee will be comprised of representatives from various departments, including Sustainability, Finance, Development, Asset Management and Legal. Granite REIT’s senior management team will be responsible for final project approval. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Granite REIT’s Finance department will use a Green Bond Register to track the net proceeds in its general account and will earmark an amount equivalent to the net proceeds for allocation to eligible green projects originated no more than 36 months prior to issuance, with the intention to fully allocate within 36 months of an offering. Pending allocation, net proceeds may be used for repayment of Granite REIT’s credit facilities, held in cash or cash equivalents, or for general corporate purposes. This is in line with market practice.

REPORTING

Granite REIT intends to provide publicly available allocation and impact reporting on an annual basis until full allocation. Allocation reporting will include information on eligible green projects, amount allocated to eligible green projects and the balance of unallocated proceeds, while impact reporting will include the level of green building certifications attained, and will draw on other impact metrics where feasible. Sustainalytics views Granite REIT’s allocation and impact reporting as aligned with market practice.