A telecommunications corporation issues a green bond to finance energy efficiency improvements for the company’s office space worldwide. The company’s risk management department commissions an independent advisory assessment of the bond to check bond alignment with components of the Green Bond Principles.
What action does the corporation take to align the bond with the “process for project evaluation and selection” component of the Green Bond Principles?
Creating an identification process for environmental and social risks related to energy efficiency improvements aligns with the 'process for project evaluation and selection' component of the Green Bond Principles. This involves defining how the projects will be evaluated and selected based on their environmental and social impacts, ensuring that only projects meeting specific criteria are financed by the bond.
Process for Project Evaluation and Selection: the related eligibility criteria, including, if applicable, exclusion criteria or any other process applied to identify and manage potentially material environmen-tal and social risks. [. . .]