Project Details
Project
LiveWest Sustainable Finance Framework Second-Party Opinion (2021)
Client
LiveWest Homes Limited
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.K.
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that the LiveWest Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Affordable Housing – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will contribute towards providing affordable housing options while promoting a low-carbon economy and advance the UN Sustainable Development Goals, specifically SDG 7, 9 and 11.
PROJECT EVALUATION / SELECTION
LiveWest’s New Homes Group and Active Asset Management Group review eligibility of projects for financing under the Framework, subject to final approval by the Environmental Group. The Organisation’s measures of managing social and environmental risks associated with its investments are applicable to all allocation decisions made under the Framework and viewed as adequate risk management systems. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
LiveWest’s Treasury team is responsible for the management of proceeds, which is overseen by the Director of Corporate Finance. The Organisation will initially deposit the proceeds in its general treasury account and track the allocation until full allocation. In addition, the Environmental Group will monitor allocation of proceeds to eligible projects. Pending allocation, net proceeds will be held as cash deposits, money market funds or used for short-term repayment of other debt facilities. LiveWest intends to allocate net proceeds for refinancing projects financed or originated within two years prior to the receipt of funds. LiveWest aims to fully allocate the net proceeds within 24 months. This is in line with market practice.
REPORTING
LiveWest intends to report on allocation of proceeds on its website on an annual basis. In addition, LiveWest is committed to reporting on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.