Second-Party Opinion Download

Sustainalytics is of the opinion that the Sage Housing Sustainable Finance Framework is credible, impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and Social Loan Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds –Affordable Housing and Energy Efficiency – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan 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 SDGs 7 and 11. 

PROJECT EVALUATION / SELECTION

Sage Housing has established an interdepartmental Sustainable Finance Committee (the “Committee”) to oversee the evaluation, selection and monitoring of the eligible sustainable projects. The Committee is comprised of Sage Housing’s CFO and the head of its Internal Audit and Risk department. Sustainalytics considers the project evaluation, selection and monitoring process in line with market practice. Sage Housing has a dedicated environmental and social risk assessment and mitigation process that is applicable to all allocation decisions made under the Framework. Sustainalytics considers this process to be strong and to be aligned with market best practice.  

MANAGEMENT OF PROCEEDS

Sage Housing has a Sustainable Asset Register and an internal process in place to earmark and track allocation of outstanding sustainable bond net proceeds to eligible sustainable projects. Pending full allocation, unallocated proceeds will be temporarily held in cash, cash equivalents or other short-term liquid instruments. Sage Housing has indicated that it intends to allocate proceeds from the initial issuance within 24 months. This is in line with market practice.

REPORTING

Sage Housing will provide allocation and impact reporting on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds raised from the bonds, details of financed and refinanced projects and the balance of unallocated proceeds. Sage Housing will contract an external auditor to review allocation reporting, which Sustainalytics views as a leading practice. Sage Housing also intends to report on positive environmental and social impacts achieved through the financed eligible projects. Sustainalytics views Sage Housing’s allocation and impact reporting as aligned with market practice.