Project Details
Project
QuadReal Green Bond Second-Party Opinion
Client
QuadReal Property Group
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Pollution prevention and control; Clean transport; Climate change adaptation;
Location
Canada
Evaluation Date
Jul 2020
Evaluation Summary
Sustainalytics is of the opinion that the QuadReal 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 include Green Buildings, Renewable Energy, Resource and Energy Efficiency, Pollution Prevention and Control, Clean Transportation, and Climate Change Adaptation and 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 SDG goals 6, 7, 11, 12 and 13.
PROJECT EVALUATION/SELECTION
QuadReal Property Group (“QuadReal”, or the “Company”) has established a Green Bond Steering Committee comprised of representatives from the Company’s Sustainability, Finance, Portfolio Management and Treasury and Capital Markets departments. This committee will be responsible for identifying and selecting eligible projects to be financed under this Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds raised under this Framework will be deposited into QuadReal’s general account and will be used to finance projects selected by the Green Bond Steering Committee. QuadReal commits to allocating 100 percent of such proceeds within 24 months from issuance. Unallocated proceeds within this period will be held in cash, short-term deposits, or other instruments as well as to repay outstanding debt under credit facilities or commercial paper that are unrelated to fossil fuel investment. This is in line with market practice.
REPORTING
QuadReal intends to report allocation of proceeds on its website on an annual basis or, in case of material changes, until full allocation. In addition, QuadReal Property Group will strive to report relevant impact metrics such as annual energy savings, reduction in GHG emissions, water consumption and waste generation etc. Sustainalytics views QuadReal Property Group’s allocation and impact reporting as aligned with market practice.