Project Details
Project
Republic and Canton of Geneva Sustainability Bond Framework Second-Party Opinion (2021)
Client
Republic and Canton of Geneva
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Switzerland
Evaluation Date
Nov 2021
Evaluation Summary
Sustainalytics is of the opinion that the Republic and Canton of Geneva Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Energy Efficiency, Renewable Energy, Clean Transportation, Access to Essential Services, and Affordable Housing – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 7, 10 ,11, and 13.
PROJECT EVALUATION / SELECTION
The process for evaluation and selection will be overseen by the Steering Group chaired by the Director General of Finance of the Canton of Geneva. The final approval of projects will be provided by the “Conseiller-ère d’État” in charge of the Department of Finance and Human Resources. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The Finance and Human Resources Department, including the General Treasury of the Canton, in charge of cantonal debt and centralized liquidity management, will be responsible for managing the proceeds under the Framework and overseeing the allocation to eligible projects. Canton of Geneva intends to reach full allocation within 24 months of issuance. Pending full allocation, unallocated proceeds will be included in the cash-pooling system of the general treasury and will not be used for any temporary financial investments. The Canton of Geneva’s social and environmental policies as well as risk mitigation processes are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate. This is in line with market practice.
REPORTING
The Canton of Geneva is committed to reporting on the allocation of proceeds, to be published on the Department of Finance and Human Resources’ website annually. In addition, the Canton of Geneva is committed to reporting on the relevant impact metrics, such as number of beneficiaries, and avoided/reduced of greenhouse gas (GHG) emissions. Sustainalytics views the allocation and impact reporting as aligned with market practice