PSA Establishes Green Finance Framework
PSA has launched the Group’s Green Finance Framework in June 2023. In recent years, green financing and sustainability-linked financing have gained traction, as policymakers, investors and firms have started to act on climate change risks, including the mainstreaming of green financial solutions.
The green loans and green bonds undertaken by any PSA entity – unless otherwise agreed between equity stakeholders and lenders – will rely on the Framework, to finance or refinance new or existing green assets or projects promoting environmental progress.
The Framework is aligned with the relevant international market standards and guidelines, and defines eligibility criteria for the Use of Loan/Bond Proceeds in the following eight areas so as to advance the UN Sustainable Development Goals:
- Clean Transportation
- Energy Efficiency
- Renewable Energy
- Climate Change Adaptation
- Green Buildings
- Pollution Prevention, Control and Circular Economy
- Waste Management and Resource Efficiency
- Sustainable Water and Wastewater Management
Sustainalytics, a Morningstar company and a globally recognised provider of ESG research, provided the Second Party Opinion on the Framework. The Second Party Opinion assesses that the PSA Green Finance Framework is credible, impactful and aligned to the Green Bond Principles 2021, Green Loan Principles 2023 and ASEAN Green Bond Standards 2018.
