Second-Party Opinion Download

Sustainalytics is of the opinion that the Trinity Industries Leasing Company Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds Clean Transportation is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the U.N. Sustainable Development Goals, specifically SDG 9. TILC’s Investor Services team is charged with overseeing portfolio selection for all green financings and will monitor the assets in the portfolio to verify the green-labeled portfolios remain aligned with the commitments of the Framework. This process is in line with market practice.

MANAGEMENT OF PROCEEDS

TILC's Investor Services team is charged with managing the proceeds of its green financing instruments; full allocation to refinance eligible assets is anticipated at the time of issuance. Sustainalytics considers the processes in place to manage proceeds to be in line with market practice. TILC intends to report on the allocation of its Green Financing Instrument on an annual basis. This report will include a breakdown of the green portfolio by value and the commodities transported. Sustainalytics views the above process as aligned with market practice. TILC’s impact reporting will, on a best efforts basis, note any changes to the expected GHG emission reduction from rail compared to other transportation methods in the U.S. Sustainalytics considers asset-level impact reporting to be a best practice while recognizing the data limitations and consequent barriers to TILC providing these metrics, and encourages striving for more granular impact reporting over the long term.