Project Details
Project
NTT Group Green Bond Second-Party Opinion
Client
NTT Group
Project Type
Green Bond/Loan
Industry Group
Telecommunication Services
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings;
Location
Japan
Evaluation Date
Jun 2020
Evaluation Summary
Sustainalytics is of the opinion that the NTT Group (NTT Group and its affiliated companies, hereinafter, “NTT Group” or the “Group”) Green Bond Framework (The “Framework”) aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, 1) Energy Efficiency, 2) Green Buildings, and 3) Renewable Energy, are aligned with those recognized by the GBP. Sustainalytics considers that the Group’s eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.
PROJECT EVALUATION/SELECTION
NTT Group’s affiliated companies will respectively evaluate and select eligible projects based on eligible criteria, and the Finance Department of NTT Finance Corporation and Nippon Telegraph and Telephone Corporation (NTT) will select projects based on the NTT Group CSR Charter. The director in charge of the Finance Department of NTT Finance Corporation will make the final decision. The Group’s process to evaluate and select projects is aligned with market practice.
MANAGEMENT OF PROCEEDS
The proceeds of the green bond will be managed by NTT Finance Corporation. The Finance Department of NTT Finance Corporation will track and manage the allocated and unallocated amounts of the proceeds of the green bond using an internal management system. For unallocated proceeds, the equivalent amount of proceeds is to be managed as cash or cash equivalent. The Group’s proceeds management process is aligned with market practices.
REPORTING
NTT Group is committed to disclosing allocation reporting and impact reporting on its Group website or an integrated report annually. Allocation reporting will include the allocation status, an overview of allocated projects, amount allocated and unallocated, and shares of financing and refinancing. Impact reporting will include qualitative environmental performance indicators including green building certification and level received, in addition to quantitative environmental performance indicators including CO2 emissions of data center and green building projects as well as CO2 emissions avoided of renewable energy projects. Sustainalytics views the Group’s reporting as aligned with market practice.