Project Details
Project
PORR Green Finance Second-Party Opinion
Client
PORR AG
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Austria
Evaluation Date
Dec 2018
Evaluation Summary
Sustainalytics is of the opinion that the PORR Green Finance Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles and Green Loan Principles. Sustainalytics considers that the financing of (i) Green Buildings and (ii) Pollution Prevention and Control will contribute the recycling of materials and GHG emission reduction as well as advance UN Sustainable Development Goals 7, 9, 11 and 12. The framework will be used for green bonds, green SSDs (Schuldscheindarlehen) and loans. PORR does not disclose a lookback period for refinancing but confirmed to Sustainalytics that loans of the financed green buildings are not older than 2-3 years. In addition, the company commits to disclosing the amount of existing and new projects in its annual reporting.
PROJECT EVALUATION/SELECTION
PORR’s internal process in evaluating and selecting projects is aligned with market practice. PORR’s Green Finance Committee is comprised of members from Corporate Social Responsibility and Sustainability, Risk, Accounting, Investor Relations and other parties, will be responsible for project selection and evaluation. This is in line with market practice.
MANAGEMENT OF PROCEEDS
PORR’s processes for management of proceeds is aligned with market practice. PORR has systems in place to track the use of proceeds. Unallocated proceeds will be allocated in PORR’s treasury liquidity portfolio (in cash or cash equivalents, money market funds amongst others). This is in line with market practice.
REPORTING
PORR intends to report on the allocation of proceeds on its website on an annual basis until full allocation. In addition, PORR is committed to reporting on impact in its Sustainability Report, Annual Report or specific Impact Report. Indicators include estimated annual energy consumption of green buildings, estimated avoided carbon emissions (in tCO2eq), sustainable labels and certificates of green buildings, volume of construction material recycled, and prevented CO2 emissions (in tCO2eq). The impact reporting may also be supplemented with case studies on specific projects. In Sustainalytics’ view reporting on these metrics is in line with market practice.