Process for Project Evaluation and Selection
The Company’s Investment team, which is responsible for evaluating all investments, works with the Company’s Sustainability and Impact team to assess whether specific projects meet the established eligibility criteria to qualify as Eligible Green Projects. This group is responsible for verifying the suitability, eligibility, and categorization of such projects in collaboration with internal experts and stakeholders. The Company’s Investment Committee, comprised of representatives of the Company’s Leadership Team, is responsible for issuing formal approval for each investment.
The Company’s investment process is guided by the Company’s Sustainability Investment Policy, which mandates the quantification of potential environmental impacts as one of the initial steps in the Company’s investment screen. To meet the Company’s sustainability investment threshold, a proposed investment must either reduce or be neutral on carbon emissions, or have some other tangible environmental benefit such as reducing water consumption. The Company calculates avoided carbon emissions efficiency using CarbonCount® and quantifiable water use reduction benefits using WaterCount. The Company also considers other environmental benefits, such as climate resilience and biodiversity protection and enhancement.
As part of the project evaluation and selection process, the Company collaborates with partner law firms to identify, mitigate, and manage perceived environmental and social risks through diligence of project partners, project siting, environmental impact assessments, location permitting, and community engagement.
Management of Proceeds of the Notes
Cash equal to the net proceeds the offering in the Company’s general account will be earmarked for allocation to Eligible Green Projects in accordance with the Green Bond Framework. Allocation of proceeds is done on a specific identification basis, with deals being identified as they are funded after the closing of this offering. Unallocated proceeds will be tracked and may be temporarily used to repay certain indebtedness and/or held in cash or cash equivalents in accordance with the Company’s policies until they are allocated.
As long as the Notes remain outstanding, the Company’s internal records will show the allocation of such proceeds from this offering to Eligible Green Projects. The Company intends to allocate the proceeds from the Offering within two years following the Offering.
Prior to the full investment of an amount equal to such net proceeds, the Company intends to invest an amount equal to such net proceeds in interest-bearing accounts and short-term, interest-bearing securities and/or may be temporarily used to repay certain indebtedness.
Payment of principal of and interest on the Notes will be made from the Company’s general funds and will not be directly linked to the performance of any Eligible Green Projects.
Allocation and Impact Reporting
During the term of the Notes, until such time as cash equal to the net proceeds of the Offering have been fully allocated to Eligible Green Projects, the Company will publish annual updates on the Company’s website and thereafter as necessary in case of material developments, detailing, at a minimum, the allocation of such net proceeds from the Offering to specific Eligible Green Projects along with the associated CarbonCount®.
Project impacts are reported on an anonymized project level in the Company’s annual Sustainability & Impact Report using CarbonCount®. While baseline emissions are included in the CarbonCount® calculation, such baseline emissions may not be publicly reported for each project.
Where feasible, annual reporting will also include qualitative and quantitative impact indicators. The Company also intends to report on the geography, market, and technology of projects that receive allocations. Examples of impact indicators that may be included are below:
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| Eligible Categories |
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Impact Reporting Metrics |
| Renewable Energy Energy Efficiency Pollution Prevention and Control Clean Transportation |
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• CarbonCount® (metric tons of CO2e avoided annually per $1,000 invested) • Avoided Emissions (metric tons of CO2e avoided annually) • Renewable or Avoided Generation (MWh) |
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| Terrestrial and aquatic biodiversity |
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• Qualitative summary of biodiversity benefits |
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| Sustainable water and wastewater management |
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• WaterCountTM (thousand gallons of avoided water consumption per $1,000 invested) |
We also intend to report on the geography, market, and technology of projects that receive allocation.
External Review
Second-Party Opinion: The Company has obtained a Second-Party Opinion on the Company’s Green Bond Framework to ensure its alignment with the 2021 Green Bond Principles. The Company’s commitment to best practices mandates that the Company review the Company’s Green Bond Framework periodically to align with the most up-to-date versions of the Green Bond Principles. Such periodic reviews may lead to necessary updates or amendments to the Green Bond Framework. In the event of a substantial amendment to the Green Bond Framework, the Company will seek an updated Second-Party Opinion.
Third-Party Assurance: Annually, the Company plans to engage a qualified independent third-party to assure the allocation of net green financing proceeds to Eligible Green Projects, following the Eligibility Criteria specified in the Green Bond Framework, with the assurance statement published alongside the Company’s annual Sustainability & Impact Report. These updates will include a management assertion that an amount equal to the net proceeds from the Offering was allocated to qualifying Eligible Green Projects, and a report from an independent accountant about their examination of management’s assertion following attestation standards established by the American Institute of Certified Public Accountants.