Project Details
Project
Southern Company Sustainable Financing Framework Second-Party Opinion
Client
The Southern Company
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Dec 2020
Evaluation Summary
Sustainalytics is of the opinion that the Southern Company Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018 (SBG), Green Loan Principles 2020 (GLP), Green Bond Principles 2018 (GBP) and the Social Bond Principles 2020 (SBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds — Renewable Energy, Climate Change Adaptation, Energy Efficiency, Clean Transportation, Green Buildings, Employment Generation, Access to Essential Services - Telecom, Access to Essential Services - Education — are aligned with those recognized by the Green Bond Principles 2018 (GBP), Social Bond Principles 2020 (SBP) and GLP. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 4, 7, 8, 9, and 11.
PROJECT EVALUATION/SELECTION
The Southern Company's internal process of evaluating and selecting projects is to be undertaken by its Sustainable Finance Coordination Group, made up of representatives from different business units, with oversight from the treasury department. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The Southern Company's management of proceeds will be the responsibility of its treasury department and it intends to allocate eligible funds within 12 months of the issuance of a financial instrument when financing new projects or refinancing existing projects with a lookback period of 24 months from issuance. The Company intends on managing unallocated net proceeds in line with its internal liquidity policies. This is in line with market practice.
REPORTING
The Southern Company intends to report on allocation of proceeds on its website on an annual basis until full allocation. In addition, The Southern Company is committed to reporting on relevant impact metrics, where feasible. Sustainalytics views the Company’s allocation and impact reporting as aligned with market practice.