Project Details
Project
Sociedad de Transmisión Austral Green Financing Framework Second Party Opinion (2021)
Client
Sociedad de Transmisión Austral
Project Type
Green Bond/Loan
Industry Group
Electrical Equipment
Use of Proceeds
Renewable energy; Energy efficiency;
Location
Chile
Evaluation Date
Nov 2021
Evaluation Summary
Sustainalytics is of the opinion that the Sociedad de Transmisión Austral Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy and Energy Efficiency – are aligned with those recognized by the Green Bond Principles 2021 and the Green Loan Principles 2021. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.
PROJECT EVALUATION / SELECTION
Sociedad de Transmisión Austral’s Green Finance Committee, which is comprised of representatives from the Company’s Sustainability, Treasury/Finance and Corporate Affairs teams will oversee the assessment of eligible projects. The Committee will meet on a semiannual basis and all projects will be subject to final approval from the Issuer’s CFO and Corporate Affairs Manager. Projects financed under the Framework will undergo an environmental and social risk assessment reported to the Board semiannually. Sustainalytics considers the risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Net proceeds of all green instruments under the Framework will be made available to eligible projects pre-identified by the Committee through the evaluation and selection process within 36 months of an offering. STA’s internal tracking and monitoring systems will be used to account for the net proceeds from all green instrument offerings. Unallocated proceeds will be used for general corporate purposes, dividend payments or held in cash or cash equivalents in accordance with STA’s internal liquidity policy. Sustainalytics considers the management of proceeds to be in line with market practice.
REPORTING
STA intends to publish an allocation report annually on its website until full allocation. This report will include the amount of net proceeds allocated to eligible green projects, descriptions of each project, and the amount of net proceeds left unallocated. In addition, the allocation report will include relevant impact metrics. Sustainalytics views STA’s allocation and impact reporting as aligned with market practice.