Project Details
Project
Grenergy Green Finance Framework Second-Party Opinion (2021)
Client
Grenergy Renovables SA
Project Type
Green Bond/Loan
Industry Group
Utilities
Use of Proceeds
Renewable energy
Location
Spain
Evaluation Date
Aug 2021
Evaluation Summary
Sustainalytics is of the opinion that the Grenergy 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 2021 (the “Principles”). This assessment is based on the following:
USE OF PROCEEDS
Grenergy intends to use the proceeds from issuances to finance projects in one category, Renewable Energy. Sustainalytics notes that the positive impact of expanding renewable energy capacity and considers that the eligible investments will contribute to advancing UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION / SELECTION
Grenergy’s internal process in evaluating and selecting projects is managed by the Management Committee, which is comprised of the CEO, CFO, Merger and Acquisition (M&A) Director, Investor Relations and Communication Director, and Head of the Legal Department. Grenergy’s risk assessment and mitigation process are applicable to all allocation decisions made under the Framework. Sustainalytics considers these environmental and social risk management processes to be adequate and aligned with market expectation.
MANAGEMENT OF PROCEEDS
The proceeds of Grenergy’s green finance instruments will be credited to a separate account and managed by the Treasury team, under the supervision of the CFO. Pending full allocation, the proceeds may be temporarily invested in Grenergy’s treasury liquidity portfolio, in the form of cash and/or cash equivalents. This is aligned with market practice.
REPORTING
Grenergy intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation. Grenergy’s Sustainability Report will provide allocation reporting including the total amount of investments and expenditures in renewable energy, the amounts or shares of proceeds allocated to general corporate expenses and M&A operations, as well as the balance of unallocated proceeds. Grenergy has also committed to reporting on relevant impact metrics. Sustainalytics views Grenergy’s allocation and impact reporting as aligned with market practice.