To improve sustainability, a railroad and transportation services company will revitalize its rail network by installing an operating system that reduces idle time. A reduction in idle time will decrease GHG emissions. To finance this plan, the company will issue green bonds beginning in 2024. The company sustainability director develops sustainability objectives and eligibility criteria to communicate to investors.
The director is fulfilling which core component of the Green Bond Principles?
The core component of the Green Bond Principles being fulfilled by the sustainability director is the 'Process for project evaluation and selection'. This involves developing sustainability objectives and eligibility criteria for green projects and ensuring these are communicated to investors. By setting these criteria, the director ensures that the projects financed by the green bonds will meet the necessary environmental sustainability goals.
2. Process for Project Evaluation and Selection: The issuer of a Green Bond should clearly communicate to investors: –the environmental sustainability objectives of the eli-gible Green Projects;