Project Details
Project
Sage Housing Social Bond Framework Second-Party Opinion
Client
Sage Housing
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.K.
Evaluation Date
Sep 2020
Evaluation Summary
Sustainalytics is of the opinion that the Sage Housing Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – Affordable Housing – is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 11.
PROJECT EVALUATION/SELECTION
Sage Housing has established an inter-departmental Social Bond Committee (the “Committee”) to oversee the project evaluation, selection and monitoring process for the Eligible Social Projects. The Committee is comprised of the Chief Financial Officer and the Head of Internal Audit and Risk. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Sage Housing has a Social Asset Register and an internal process to earmark and track allocation of outstanding social bond net proceeds to Eligible Social 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 its initial issuance within 24 months. Subsequent issuances may be allocated up to maturity. This is in line with market practice.
REPORTING
Sage Housing will provide allocation and impact reporting on an annual basis, on its website, until full allocation. Allocation reporting will include the total amount of proceeds raised under the bond, details of financed/refinanced projects and the balance of unallocated proceeds, if any. Sage will contract an external auditor to review allocation reporting, which is viewed as a best practice. In addition, on a best effort basis, Sage Housing intends to report on positive social impacts achieved through the financed Eligible Social Projects. Sustainalytics views Sage Housing’s allocation and impact reporting as aligned with market practice.