Second-Party Opinion Download

Sustainalytics is of the opinion that the Hanwha Energy USA 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 category for the use of proceeds – Renewable Energy – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the solar energy projects will help to reduce total GHG emissions by increasing the renewable energy output in the United States and increase access to affordable and clean energy while advancing the UN Sustainable Development Goals, especially SDG 7.

PROJECT EVALUATION/SELECTION

Hanwha Energy USA’s eligible projects will be reviewed and evaluated by its Investment Committee, which is comprised of cross-departmental representatives from Development, Engineering, Operating & Management, Legal and Project Financing Teams. Projects are selected following a three-step approach, including amongst others the evaluation of environmental impacts. Final approval of shortlisted projects is conducted by the Global Investment Committee. Hanwha Energy USA’s Business Planning & Strategy team and Development Team will continuously monitor and check whether the project developments remain in line with the Framework. This process is in line with market practice.

MANAGEMENT OF PROCEEDS

Proceeds of the green bond will be tracked and recorded by the company’s Business Planning and Strategy Teams using a dedicated ledger which includes information on green bond details, the eligible green projects list, total project cost, amount allocated and amount of unallocated proceeds. Pending full allocation, the unallocated green bond proceeds will be held in cash or invested temporarily in short-term liquid money instruments, according to Hanwha’s liquidity management policies. Sustainalytics views this process in line with market practice.

REPORTING

Hanwha Energy USA will provide an annual allocation report on the company’s corporate website as a separate green bond report, including allocated and unallocated proceeds as well as selected examples of projects financed. Where feasible, a description of the eligible green projects, including project location and amount allocated, may be added within the report. With regards to the impact report, Hanwha Energy USA commits to disclose data on impact indicators as well as calculation methodologies and key assumptions. Sustainalytics views Hanwha Energy USA’s reporting practices as aligned with market practices.