Project Details
Project
Korea South East Power Co. Sustainability Financing Framework Second-Party Opinion
Client
Korea South East Power Co.
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Mar 2019
Evaluation Summary
Sustainalytics is of the opinion that the Korea South East Power Co. Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds (i) Renewable Energy, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Terrestrial and Aquatic Biodiversity Conservation, (v) Green Buildings, (vi) SME Financing and Microfinance, (vii) Employment Generation, (viii) Socioeconomic Advancement and Empowerment are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Although the financing is not exclusively project-based, Sustainalytics considers the eligible green and social projects to have positive environmental and social impact and to advance various UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
KOEN will establish a Sustainable Financing Steering Committee (“SFSC”) with various crossdepartmental representation which will review and approve Eligible Use of Proceeds. Sustainalytics views this process aligned with market standards.
MANAGEMENT OF PROCEEDS
KOEN will establish a Sustainable Financing Register through which it will record and track all bond allocations. Pending full allocation, proceeds from the Sustainable Financing Transactions (“SFT”) will be held in accordance with the Group’s general liquidity management policies. This is in line with market practices.
REPORTING
KOEN commits to disclose an annual allocation and impact reporting which will be disclosed on the company’s website, in its annual report, or in its sustainability reports. The allocation reporting will comprise the list and breakdown of Eligible Use of Proceeds along with the balance of unallocated proceeds. The impact reporting will be disclosed where possible and will comprise relevant impact indicators per each eligible project category. KOEN confirmed to Sustainalytics that both allocation and impact reporting will be issued annually. Sustainalytics considers the metrics and frequency of reporting to be aligned with market standards.