Project Details
Project
Icade Green Financing Framework Second-Party Opinion (2021)
Client
Icade S.A.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
France
Evaluation Date
Nov 2021
Evaluation Summary
Sustainalytics is of the opinion that the Icade Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, 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 are expected to improve the Company’s environmental performance, contribute to the low-carbon transition in France and to advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.
PROJECT EVALUATION / SELECTION
Icade’s Green Committee, comprised of the Chief Financial Officer and the heads of the following departments: Investor Relations, Finance, Property Investment, Portfolio Management and Corporate Social Responsibility, is responsible for selecting and validating eligible projects and expenditures. Icade has processes in place to identify and mitigate common environmental and social risks possibly associated with the Eligible Green Portfolio, which apply to all allocation decisions under the Framework and are viewed as adequate risk management systems. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The Green Committee is responsible for validating and monitoring the allocation of net proceeds. Icade will use its internal accounting system and appraisal reports to track the proceeds. Pending allocation, net proceeds will be temporarily held in cash, deposits, money market instruments or other liquid short-term marketable instruments. Icade aims to complete the full allocation of proceeds within two years of issuance. This is in line with market practice.
REPORTING
Icade intends to report on allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include an overview of outstanding green financial instruments, size of the Eligible Green Portfolio, balance of unallocated proceeds as well as amount of new and existing projects and expenditures. In addition, Icade is committed to reporting on relevant impact metrics. Sustainalytics views Icade’s allocation and impact reporting as aligned with market practice.