Green Financing Framework
Healthpeak has developed a Green Financing Framework in alignment with the International Capital Markets Association (ICMA) Green Bond Principles 2021 (GBP) and Green Loan Principles 2021 (GLP and, together with the GBP, the Principles). Healthpeak’s Green Financing Framework is based on four core components of the Principles:
- Use of Proceeds
- Process for Project Evaluation and Selection
- Management of Proceeds
Use of Proceeds
Proceeds from Healthpeak’s green financing transactions will be used to finance and/or refinance, in whole or in part, new or existing eligible green projects, e.g. Green Buildings, Energy Efficiency, Renewable Energy, Waste Management, Sustainable Water and Wastewater Management, and Clean Transportation
Eligible Green Projects financed and/or refinanced with the net proceeds from green financing transactions will be evaluated and selected by members of Healthpeak’s Green Finance Committee based on the criteria set out in the framework. The Green Finance Committee consists of members from Healthpeak’s Legal, Capital Asset Management, and Treasury & Capital Markets functions.
Management of Proceeds
Healthpeak intends to allocate an amount equal to the net proceeds from green financing transactions to Eligible Green Projects selected in accordance with the Eligibility Criteria and evaluation and selection process established in the Green Financing Framework. Healthpeak’s Green Finance Committee will establish a Green Financing Register to record investments in Eligible Green Projects funded, acquired, refurbished or developed within the period commencing 36 months prior to each green financing transaction and ending on the maturity date of each transaction.
Healthpeak intends to fully allocate all net proceeds within 36 months of each green financing transaction. In the interim, any portion of the net proceeds from the transaction that are unallocated to an Eligible Green Project will be invested in accordance with Healthpeak’s cash investment policy.
An allocation report will be publicly available to investors and lenders within approximately one year from the date of any green financing transaction, and thereafter once a year until full allocation. Allocation reports will disclose the total amount of proceeds allocated toward Eligible Green Projects. This information will be externally reviewed and will be publicly available on Healthpeak’s Sustainable Finance webpage at www.healthpeak.com/sustainable-finance.
Where feasible, on an annual basis, until full allocation, Healthpeak plans to report on the Key Performance Indicators (KPIs) of the Eligible Green Projects. Definition, calculation and reporting of KPIs will be at Healthpeak’s sole discretion.