Second-Party Opinion Download

Sustainalytics is of the opinion that the Vellinge Kommun Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds - Renewable Energy, Energy Efficiency, Electronic Communication, Waste Management, Sustainable Transportation, Water and Wastewater Management, Stormwater Management, Climate Adaptation Measures and Green Buildings - are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11 and 13.

PROJECT EVALUATION AND SELECTION

Vellinge Municipality’s finance department will be responsible for project evaluation and selection in line with the Framework’s eligibility criteria, working in consultation with the implementing departments and municipal companies. The finance department will also maintain a list of eligible projects, in cooperation with Serkon AB, a financial company specializing in supporting Swedish municipalities. The finance department will also assess the environmental and social risks associated with eligible projects to ensure compliance with relevant national and European laws and regulations. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Vellinge Municipality’s finance department will be responsible for the allocation of net proceeds, working in consultation with the implementing departments and municipal companies. All green bonds issued under the Framework will be managed on a portfolio basis and an amount equivalent to the net proceeds from the green bonds will be reported to the municipal board in a dedicated report on a monthly basis. Vellinge Municipality intends to allocate the proceeds within one year of issuance. Pending full allocation, unallocated proceeds will be placed on a separate account. This is in line with market practice.

REPORTING

Vellinge Municipality commits to report on the allocation of proceeds on the Municipality’s website on an annual basis until full allocation. Allocation reporting will include a list of financed projects in Vellinge, total amount of green bonds issued, share of proceeds used for new financing and refinancing, share of proceeds used per category and share of unallocated proceeds. In addition, Vellinge Municipality is committed to impact reporting on relevant metrics. Sustainalytics views Vellinge Municipality’s allocation and impact reporting as aligned with market practice.