Project Details
Project
Nippon Building Fund Inc. Green Finance Second-Party Opinion
Client
Nippon Building Fund Inc.
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings
Location
Japan
Evaluation Date
Feb 2021
Evaluation Summary
Sustainalytics is of the opinion that the Nippon Building Fund Inc. (“NBF” or the “Investment Corporation”) Green Finance Framework (The “Framework”) is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP) and the Green Loan Principles 2020 (GLP). This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the GBP and GLP. Sustainalytics considers that NBF’s eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.
PROJECT EVALUATION/SELECTION
The candidate projects will be selected by the Real Estate Investment Team of the Investment & Finance Group of Nippon Building Fund Management Ltd. (NBFM), the asset management company of NBF, and after deliberations by the Investment Review Meeting and Executive Board, the President & CEO will make the final selection of the projects. NBF’s evaluation and selection process is in line with market practice.
MANAGEMENT OF PROCEEDS
NBF manages the proceeds in a portfolio approach. While the green finance is outstanding, the Financial Team of NBFM will annually ensure that the amount of outstanding finance do not exceed the sum of acquisition costs of the Eligible Green Assets, using an accounting system and ledger sheet. Unallocated proceeds will be held in cash or cash equivalents. NBF’s management of proceeds is aligned with market practice.
REPORTING
NBF will disclose on its website annually information on the allocation and environmental impacts. In the allocation reporting, NBF will disclose the names of the Eligible Green Assets, amount of Eligible Green Debts and outstanding green finance, and the fact that the outstanding green finance does not exceed the Eligible Green Debts. In the impact reporting, NBF will disclose the types and ranks of green building certifications of the Eligible Green Assets and qualitative and quantitative indicators including CO2 emissions from energy consumption. Sustainalytics views NBF’s reporting as aligned with market practice.