Project Details
Project
Novelis Green Bond Framework Second-Party Opinion
Client
Novelis Inc.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the Novelis 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 categories for the use of proceeds – Renewable Energy and Pollution Prevention and Control – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and12.
PROJECT EVALUATION/SELECTION
Novelis’ eligible projects will be evaluated by a Green Bond Committee made up of representatives from the heads of various business units as well as the Sustainability and Treasury teams. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Net bond proceeds will be managed by Novelis’ Finance department. Pending allocation, the proceeds will be temporarily invested in cash or cash equivalents according to the Company’s internal liquidity policy. This is in line with market practice.
REPORTING
Novelis intends to report on allocation of proceeds on its website via a Green Bond Report which will include amount of allocated and unallocated proceeds, as well as the description of projects. In addition, the Company is committed to reporting on relevant impact metrics. Sustainalytics views Novelis’ allocation and impact reporting as aligned with market practice.