S&P Global’s Green
Evaluation Tool - Airports
Permission to reprint or distribute any content from this presentation requires the prior written approval of S&P Global Ratings. Copyright © 2018 by Standard & Poor’s Financial
Services LLC. All rights reserved.
No content below the line
S&P Global Ratings Green Evaluation – for Mitigation and Adaptation Projects
2
• Provides an asset-level environmental benchmark that goes beyond existing green frameworks to provide a relative environmental impact taking into account the location and technology being applied.
• Defines the value of "green" for capital markets and any other financing – whether it is labelled by the issuer or not. Enable institutional investment in sustainability by providing the confidence of independent evaluation of environmental impact.
• Can opine on alignment with International Capital Markets Association’s Green Bond Principles.
• For Mitigation projects, we evaluate and score 0-100 the relative net benefit of the projects financed by proceeds over their lifetime relative to a local baseline on a E1-E4 scale.
• For Adaptation projects, we evaluate and score 0-100 the relative resilience benefits of the projects financed by proceeds over their lifetime on a R1-R4 scale.
No content below the line
Footer : Never change the footer text on individual slides. Change, turn on or off Data color order: Complimentary colors:
Green Evaluation Analytical Approach
3
* eKPI – Environmental Key Performance Indicator
Weighted aggregate of three:
Transparency Governance Mitigation AdaptationGreen
Evaluationor
Transparency‒ Use of proceeds
reporting
‒ Reporting
comprehensiveness
Governance‒ Management of
proceeds
‒ Impact assessment
structure
Final Green Evaluation (E1- E4 or R1- R4)
MitigationBuildings, industrial
efficiencies, energy
infrastructure, transport,
and water
Net benefit ranking eKPIs:
Carbon emissions, water
use, waste creation
AdaptationResilience capex such as
flood defenses, asset
protection etc,.
Cost benefit rankingResilience benefit ratio
Estimate of reduction in
damages if event occurs
Hierarchy applied
Resilience level
Adaptation scoreMitigation score
Environmental impact
15% + 25% + 60% or 60% = 100%
No content below the line
Renewable Energy Transport Buildings Energy Efficiency
‒ Solar PV‒ Solar thermal ‒ Hydro small (<30mw)‒ Hydro large (>30mw)‒ Onshore wind‒ Offshore wind‒ Wave & tidal ‒ Landfill gas‒ Geothermal ‒ Biomass
‒ Rail (electric and diesel)‒ High speed rail ‒ Underground urban rail ‒ Overground urban rail ‒ Hybrid vehicles ‒ Electric vehicles ‒ Hydrogen fuel cell vehicles ‒ Electric buses ‒ Diesel buses
‒ New build commercial ‒ New build residential ‒ Refurbishment HVAC‒ Refurbishment LED lighting‒ Refurbishment wall insulation‒ Refurbishment roof insulation ‒ Refurbishment door & window insulation
‒ Refurbishmentdoor&windowinsulation
‒ R
‒ Heating and cooling ‒ Electronics‒ Residential
appliances ‒ Office equipment ‒ Commercial food
services equipment‒ Industrial efficiencies
– Aluminium
‒ Industrial efficiencies –Cement
‒ Industrial efficiencies –Chemicals
‒ Industrial efficiencies –iron & steel
‒ Industrial efficiencies –pulp & paper
Water Fossil Fuels Nuclear
‒ Conservation measures in residential buildings
‒ Conservation measures in commercial buildings
‒ Conservation measures in industrial equipment
‒ Smart metering in residential buildings
‒ Reducing water losses in the water distribution network
‒ Water desalination to supply potable municipal water
‒ Recycling wastewater to supply potable municipal water
‒ Recycling wastewater to supply non-potable water for agricultural uses
‒ Recycling wastewater to supply non-potable water for other industries
‒ Wastewater treatment to with no energy recovery
‒ Wastewater treatment with energy recovery
‒ New clean coal (sub critical, super critical, ultra-supercritical and advanced ultra-supercritical)
‒ Coal to gas ‒ Power plant
improvements
‒ Nuclear (refurb or new)
Full list of technology types that are currently in scope
4
No content below the line
Carbon Hierarchy
Role In Green Transition Technology
5
Systematic decarbonization of economies
The Mitigation or Adaptation categories account for 60% of the final score. In recognition of the varying levels of
contribution to avoiding climate change by different technology, we consider each technology’s overall contribution to
decarbonization that would not be fully captured by our regional net benefit calculation alone.
This gives us the overall score.
Significant Decarbonization of Key sectors
through low-carbon solutions
Decarbonization by alleviating emissions in
intensive industries
Decarbonization technologies with
significant environmental hazards
Improvement of fossil fuel based activities’
environmental efficiency & impact
Wind and Solar Power, Small and Large Hydro
Coal to natural gas, Clean fuel production, Clean use of coal
Energy management and control
Green Transport apart from hybrid/fuel efficient vehicles
Green buildings new built best standards/net zero
Industrial efficiencies
Green Transport (with fossil fuel combustion) Green buildings
refurbishment/new built lower standard
Energy-efficient products
Nuclear
Large Hydro in tropical areas
Inc
rea
sin
g c
on
tribu
tion
to c
lima
te c
ha
ng
e a
vo
ida
nc
e
Source: S&P Global Ratings Green Evaluation Analytical Approach. April 26, 2017.
No content below the line
Footer : Never change the footer text on individual slides. Change, turn on or off Data color order: Complimentary colors:
Airport Green Evaluations
6
Split By Country (USD millions equivalent)Split by Technology (USD millions equivalent)
MS: Multi-sector (49% of bonds
cover more than one sector)
Green Evaluations of Airport Transactions (proposed and final)
Mexico
U.S.A.
Netherlands
New Build Commercial
Unspecified Refurbishments
Bus Rapid Transit
Solar photovoltaic energy
EnergyStar products (electronics)
EnergyStar products (heating andcooling)Wastewater Treatment (potable)
Water Conservation (CommercialBuilding)HVAC
LED
Commercial insulation
Source: S&P Global Ratings
As of Oct 15, 2018
No content below the line
Footer : Never change the footer text on individual slides. Change, turn on or off Data color order: Complimentary colors:
7
Green Evaluation RegionFinancing
Value (millions)Green Labelled
Overall score
(0-100)
Overall score
(E1-E4)
Royal Schiphol Group Green Bond Netherlands€ 500
(proposed)Yes 74 E2
DZ Bank AG Preferred Senior Notes Germany € 250 Yes 85 E1
Denver Airport System Revenue Bonds USA US$2,280 No 87 E1
Greenalia Biomass Power Curtis Teixeiro Spain €125 No 77 E1
Ygrene Energy Fund Inc. USA US$340.47 Yes 76 E1ACS Servicios Comunicaciones y Energia
S.LGlobal €750 Yes 83 E1
Eolica Mesa La Paz S. de R.L de C.V Mexico US$303 No 91 E1
Modern Land (China) Co. Ltd. China US$350 Yes 84 E1BIF III Holtwood LLC USA/Global US$350 No 90 E1
Landsea Green Group Co., Ltd. China US$200 Yes 84 E1Ence Energia Spain €220 No 79 E1Bazalgette Finance Tideway U.K. £10,000 No 95 E1
Hannon Armstrong USA US$163.75 No 80 E1Province of La Rioja Argentina US$200 Yes 85 E1Brookfield Power New York Finance USA US$305 No 91 E1TenneT Holding Germany €1,000 Yes 95 E1Greater Orlando Aviation Authority
Revenue BondsUSA US$997 No 78 E1
Capital Region Water USA US$44 No 87 E1
Mexico City Airport Trust Program Mexico US$6,000 Yes 77 E1
DC Water & Sewer Authority USA US$100 Yes 92 E1Brookfield White Pine Hydro USA US$475 No 90 E1
Three Gorges Finance II EMEA €650 Yes 83 E1Gothenborg (City of) Sweden SEK 1,000 Yes 67 E2Cross Sound Cable USA US$120 No 87 E1
As of 15.10.2018
S&P Global Ratings’ Public Green Evaluations
No content below the line
8
No content below the line
Schiphol Airport proposed Green bond
9
No content below the line
Schiphol Airport proposed Green bond
10
No content below the line
11
No content below the line
12
No content below the line
13
No content below the line
Footer : Never change the footer text on individual slides. Change, turn on or off Data color order: Complimentary colors:
Further Information: spratings.com/greenevaluation
14
No content below the line
Footer : Never change the footer text on individual slides. Change, turn on or off Data color order: Complimentary colors:
Q&A
If you would like more information please visit spratings.com/greenevaluation or email [email protected]
No content below the line
Footer : Never change the footer text on individual slides. Change, turn on or off Data color order: Complimentary colors:
Copyright © 2018 by Standard & Poor's Financial Services LLC. All rights reserved.
No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARECONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.capitaliq.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors.
Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.
