New South Wales Treasury Corporation NSW Sustainability Bond Programme
Creating a sustainable future
Annual Report 2019 ABOUT THIS REPORT Contents Year in review 1 This is the inaugural annual report of the NSW Sustainability Bond Programme and Message from the Chair, we will continue to report on an annual basis NSW Sustainability Committee 2 over the life of the programme. The report provides an overview of bonds that were NSW Sustainability Bond Programme 4 issued under the programme over the past The vision 5 year, our governance and certification, and where the funds we raised were earmarked Strong governance established 6 to, including dollar amounts and details How the proceeds of our sustainability of each project. bonds can be used 7
An electronic copy of this report is available A positive impact on NSW people and communities 8 at www.tcorp.nsw.gov.au. Policy Spotlight: NSW and climate change 8 TCorp Green Bond issuance 10 FEEDBACK TCorp Green Term Deposit 11 We welcome your feedback on our report How the proceeds of the Green Bond to help improve future editions – please were used 12 contact Naomi Wilkie, Senior Economist at Low carbon transport 12 the Office of Social Impact Investment on +61 2 9228 4321 and the Head of Water infrastructure 16 Marketing at TCorp on +61 2 9325 9325. Reporting: 2018 Green Bond assets 18
STAY UP TO DATE Awarded and acknowledged 20 About TCorp 21 Follow us on www.linkedin.com/company/ tcorp-nswtreasurycorporation/ References 22
Appendices Independent reasonable assurance report 26
Cover photograph: Bike riders at sunrise, Central Coast, New South Wales, Australia. Photographer: Steve Christo NSW SUSTAINABILITY BOND PROGRAMME Year in review
Largest green bond issued Diversified our investor base in Australia −− 57 investors in total −− Issued the inaugural 10-year A$1.8bn −− 15 new investors for TCorp, improving Green Bond In November 2018 the diversification of the investor base −− Transaction is the largest single green bond and helping to mitigate future funding risk issue to date in the Australian dollar market
Partnered with Fully certified, aligned to state government NSW Government family climate policies and goals
−− Close collaboration between TCorp, −− Implemented the NSW Sustainability Bond NSW Treasury, the NSW Office of Social Framework to underpin the credentials Impact Investment and the NSW Department of further issuances of Planning, Industry and Environment to further −− Aligned to the International Capital Market the aims of the NSW Sustainability Bond Association’s Green Bond Principles, Social Bond Programme Principles and Sustainability Bond Guidelines −− The close partnerships extended to invaluable −− Incorporated an independent assurance contributions from Sydney Metro, Transport for of the programme NSW and Sydney Water −− Two products have been certified by the −− Partnerships that helped to deliver the NSW Climate Bonds Initiative – the November 2028 Sustainability Bond Programme and launch Green Bond in October 2018, and the Green Term the Green Bond Deposit in August 2019 −− Consistent with the NSW Climate Change Policy Framework, State Infrastructure Strategy, Future Transport Strategy and NSW Premier’s priorities
Contributed to NSW communities The November 2028 Green Bond and people won three industry awards
−− Earmarked three assets to be refinanced by the −− Best Sustainable Finance Deal, FinanceAsia Green Bond: the Sydney Metro Northwest; the Achievement Award 2018 Newcastle Light Rail; and the Lower South Creek −− Australian Sustainability Deal of the Year, Treatment Programme KangaNews Awards 2018 −− Australian Dollar Rates Bond Deal of the Year, KangaNews Awards 2018 NSW SUSTAINABILITY BOND PROGRAMME BOND SUSTAINABILITY NSW
1 2 NEW SOUTH WALES TREASURY CORPORATION have been established to support this programme. programme. this support to established have been governance structures robust and Environment, Industry Planning, of Department NSW the and Investment Impact Social of Treasury, Office NSW NSW with the collaboration close and partnerships our Through TCorp. to new were 15 which of Bond, Green the in 57investors were there 35 investors, around attracts usually issuance bond abenchmark While base. investor our is diversify to TCorp for A goal MEETING REQUIRED OUTCOMES market. this in dollars Australian in bond green single largest is the it report, this of date publishing the as of and notice take and up stand offshore and here investors made bn A$1.8 writing scale; to respect with footing anew on Australia in issuance bond green We has put it believe received. 2018 was enthusiastically November in it and issued bond green first this for support market gauged TCorp outcome. environmental abetter provided that to opportunities capital in allocating interested genuinely have become investors time, same At the significance. of projects sustainable fund to looking Government NSW the with juncture, right the at along came bond highly-targeted This success. key its measure of the was not alone that oversubscribed, heavily bond—was green programme—a this from issuance first our While for the community.benefits tangible deliver to commitment and together people with foresight, passion family, bringing Government NSW the across agencies between collaboration close of culmination the is Programme Sustainability NSW The Bond Committee Sustainability NSW Message from the Chair,
certification. and Guidelines, Bond Climate Bonds Initiative Sustainability and Principles Bond Social Principles, Bond Green (ICMA) Association’s Market Capital International assuranceindependent by EY, alignment the with seeking including practice, market best with consistent We aprogramme have to created proud also are meet recognised and expected standards. funded projects ensure and over many come to years forward programme this take to capacity and confidence We have the programme. our for place in structure governance and framework overarching the putting when mind in longevity had partners its and TCorp ASSURANCE AND GOVERNANCE in terms of investor appetite and understanding. understanding. and appetite investor of terms in emerging still are bonds These social). and green of (a combination bonds sustainability indeed or bonds, social forward putting in opportunity is asignificant there world, the around developed quite are bonds green While NSW? for programme bond sustainability quality ahigh deliver to we we how ensure can continue So, sustainably. and efficiently more resources water using change, climate of face the in infrastructure resilient build to organisation’s remit the of part a major form but sanitation, improved provide only not services wastewaster and water Sydney Water,For funded the issues. mobility with commuters for was addressed accessibility addition, In times. commuting in reduced year, May in this has resulted operations commenced which project Northwest Sydney Metro the example, For emerging social benefits. the see to excited we also are time, same At the asset. each of aspects climate and environmental the on back we reporting are Initiative, Bonds Climate the under certified Bond, Green first this of case the In outcome. required the meet to allocated are raised funds how the demonstrate we must bond, proceeds’ a‘use of As
for our programme our for in place governance structure and framework overarching the putting mind in when longevity had partners TCorp its and sincerely. most them I thank Sydney Water. and NSW for Transport Sydneyat Metro, colleagues our and partners key agency four our from enthusiasm and knowledge expert the without develop to able have we not would been insights are These issuances. future with do to able we what may and be outcomes, of terms in measured be can what discover projects, and assets identify entities, of understanding of alevel achieve to able we have been this, Through programme. the underpins that family Government NSW the with partnership valuable and unique the To reiterate to Iwanted close, A TRUE PARTNERSHIP
the world. world. the around and Australia in investors attract to continue will is what quality We that believe process. a certification undertake appropriate, and where an assurance provider by vetted are they ensuring assets, the around diligence due on afocus we maintain us that for important It’s issue. we already that bonds purpose general existing the complement will which bond social and 2019, asustainability issue to we intend of half second the In community. NSW the for outcomes possible best the meet that projects deliver to continue will that We ajourney on havebeginning. embarked the is only it awards, industry three of winner the and success, unqualified an has been Bond Green our While OUTLOOK Chair, NSW Sustainability Committee Chair, Sustainability NSW Palmer Katherine WELCOME FROM CHAIR, NSW SUSTAINABILITY COMMITTEE
3 NSW SUSTAINABILITY BOND PROGRAMME 4 NEW SOUTH WALES TREASURY CORPORATION by the Climate Bonds Initiative. Bonds Climate by the Standard Bonds Climate the with compliant as being certified by EY, and provided assurance post-issuance and pre-issuance with Framework, Bond Sustainability NSW the under was issued bond The awards. industry of anumber has received also It market. dollar Australian the in issue bond green single largest is the transaction this report, this of date publication the at As Programme. Bond Sustainability NSW the under Bond Green 10-year, A$1.8bn inaugural its 2018, issued TCorp November In SDGs). (UN Goals Development Sustainable Nations United the meeting to commitment Australia’s ongoing supports it Further, community. the for outcomes environmental and social economic, transparent and positive support that projects finance to by helping future sustainable amore of part be to opportunity the with investors provides Programme Bond Sustainability NSW The family. Government NSW the within collaboration unique the highlights and projects determined by the primary objectives of the underlying social and/or sustainability bonds. classification The is green, of issue the enabling programme bond sustainability wasNSW Australian the first state to establish a Programme Bond Sustainability NSW
− − − Association below: Markets Capital International by the defined are bonds sustainability and social Green, − − − of both the GBP and SBP. and GBP the both of components core four the with aligned are bonds Sustainability Projects. Social and Green both of acombination refinance, or finance to applied exclusively be will proceeds the where bonds are bonds Sustainability (SBP). Principles Bond Social the of components core four the with aligned are which and Projects Social eligible existing and/or new full, in or part in refinance, or finance to applied exclusively be will proceeds the where instrument bond of any are type bonds Social (GBP). Principles Bond Green the of components core four the with aligned are which and Projects Green eligible existing and/or new full, in or part in refinance, or finance to applied exclusively be will proceeds the where instrument bond of any type are bonds Green 1 − − − − − − include: annually. programme aims the for overarching Our results and progress programme’s the on reporting to we committed and are issuances bond further for plans already are There programme. the for vision exciting an has TCorp outcomes, social and environmental positive with capital align to appetite investor considerable With VISION THE − − − − − − social problems. and environmental pressing state’s most the to solutions cross-government innovative, Inspiring and programmes. assets government of lifecycle the through practices sustainability of embedding the influencing and Highlighting outcomes. sustainability of disclosure transparent and reporting, measurement, outcomes and impact of discipline the in practice best global to contributing and upon Drawing sector. finance development the of wider the Supporting sustainable outcomes. SDG UN meeting towards contribute to finance ways for Seeking and/or social outcome. environmental apositive with projects of support in capital mobilise to pathways demonstrating and bonds way sustainability in the Leading
“ from the Green Bond: Bond: Green the from many outcomes to macro Sydney Water pointed Strategy at SydneyStrategy Water. Turner, Advisor,Christine Corporate Policy Principal low carbon and circular and economy.”low carbon help us to work towards transitioning to a and sustainableefficient resource use will climate change and innovating provide to to Sydney resilience Water building is how Showing gains. sustainability and theybut also provide broader environmental provide in public sanitation, health benefits greater Sydney. services these do only Not of people the to wastewater services in providing essentialbenefits water and showcasesProgramme multi-faceted the Bond Sustainability Government’s NSW Sydney Water’s in participation the NSW SUSTAINABILITY BOND PROGRAMME
5 NSW SUSTAINABILITY BOND PROGRAMME 6 NEW SOUTH WALES TREASURY CORPORATION Environment. Environment. and Industry Planning, of Department NSW the and Investment Impact Social of Treasury,NSW Office NSW from representatives includes and by TCorp coordinated is and which chaired Committee, Sustainability NSW by the is undertaken proceeds bond the of allocation and pool asset the in included are that projects the of Oversight Framework. Bond Sustainability NSW by the guided is primarily which Committee Sustainability NSW the includes and programme, the underpins architecture governance A sound outcomes. desired with and alignment to ensure transparency Programme Bond Sustainability NSW the of keyall elements are assurance and certification Evaluation, STRONG GOVERNANCE ESTABLISHED NSW SUSTAINABILITY BOND PROGRAMME
A$13.3bn in the 2019 year. the in financial A$13.3bn raise to aims which programme, bonds purpose general TCorp’s overall 2019, complement to of half is designed second the in issued be to bond social and sustainability a and deposits term green piloted recently the includes which programme, our universe; income fixed overall the of afraction only represent bonds green Currently, criteria). sectoral (including Standard Bonds Climate and Guidelines Bond Sustainability ICMA the with projects nominated and Framework Bond Sustainability NSW the of alignment material confirming report assurance independent an provided EY Bond, Green the of issue the to Prior verifier. party by athird is undertaken controls associated and frameworks governance robust the of Validation function. its of performance the with assist to family Government NSW the of members from expertise on draw to able is also Committee Sustainability NSW The
the programme. programme. the under formats sustainability and/or social green, in bonds may proceeds’ show ‘use of how issue TCorp to Committee Sustainability NSW by the developed was jointly Framework Bond Sustainability NSW The USED BE CAN BONDS SUSTAINABILITY OUR OF PROCEEDS HOW THE 15 Australian entities in four currencies. four in entities 15 Australian from 35 were issuances there told All £500mn). from converted (A$883mn, Group and Macquarie from €750mn) (A$1.2bn, converted A$1.25bn, NAB with Treasury Corporation by Queensland followed deal, 2018 of A$1.8bn was arecord quarter fourth the in market bond green the into TCorp’sthat entry noted also research Initiative Bonds Climate The 2018 Market The Of State The Bonds: Green in identified cumulatively, over US$500bn and zero over US$170bn to has from grown annually issuance bond green adecade, under just in where 2017. in trends, issued global A$3.3bn reflects This the than 2018, in higher issued and A$6.0bn the to is close 2019 of this half alone, first the in written were bonds green in A$3.9bn Over years. two past over the dramatically has increased Australia in issuance bond green that revealed Initiative Bonds Climate by the report The GLOBALLY AND AUSTRALIA –IN BONDS GREEN OF RISE THE Australia Green Finance State of the Market the of State Finance Green Australia (SOTM).
volume), including the TCorp Green Bond. Green TCorp the volume), including 15 (42 deals by issued cent assessed having per Climate Bonds, independent of Certified verifier leading was the EY while Standard, Bonds Climate the under certified were Australia in issued bonds green all of cent per 83 that identified report SOTM The market. Australian the in is apriority Certification 2019. June 30 at position was 10th in Australia rankings, bond green global In (US$4.0bn). Indonesia and (US$6.7bn) spot fourth Korea in by South out rounded were countries five top The (US$12.4bn). Japan and China (US$91.5bn) behind region, Asia-Pacific the in issuance bond green for third was ranked Australia − − − that: assets and projects refinance or finance to earmarked be will how bonds demonstrating of goal overarching the details and committee in the represented agencies respective the of controls and processes procedures, internal by the is supported framework This − − − or social objectives. Government’s NSW the environmental and/ Support SDGs. UN towards meeting contribute and with Align outcomes. social and/or environmental positive Deliver NSW SUSTAINABILITY BOND PROGRAMME
7 NSW SUSTAINABILITY BOND PROGRAMME 8 NEW SOUTH WALES TREASURY CORPORATION towards helping the state meet the UN SDGs. SDGs. UN the meet state the towards helping contributes also and objectives stated Government’s NSW the supports NSW. of This people the to benefits social and/or environmental tangible recourse), and offer is non- (which pool asset the in inclusion for suitable as Committee Sustainability NSW by the assessed have that been assets and projects refinance or finance to allocated are bonds these from raised Proceeds in future. bonds sustainability and/or social green, further of issuance for allow would that a framework establish to and market the to was presented bond first the before was place in structure governance correct to ensure the together Committee—worked Sustainability NSW by the programme—led the in partnering To agencies the all end, that outcomes. social enhanced were as important just and bond; the of remit the with line in was essential, outcomes climate and environmental on delivering that indicated feedback investor programme, the to investors of set diverse amore attract to roadshow a In certification. its as per outcome environmental adesired meet that projects to only is allocated Bond Green TCorp the through raised Funding family. Government NSW the within collaboration of power the impact and demonstrating the wider community in asustainable manner, priorities to deliver for of the benefit projects Government NSW with closely aligns programme The communities and people A positive impact on NSW
NSW AND CLIMATE CHANGE CHANGE CLIMATE AND NSW SPOTLIGHT:POLICY “ NSW Minister for Energy and Environment. and Energy for Minister NSW Kean MP,Matt is what we do now.” immediate more question The by 2050. Statethe of atarget net zero emissions degreestwo Celsius. is It also why we set of limiting global warming to well below Paris the Government target supports This is why Wales New the South ignore risk the posed by climate change. then made by science but contribution responsibleNo leader can accept the climate on change… responsible action decisive people and expect The of NSW
2
lower than 2005 levels. 2005 lower than cent per 18.2 were shows 2017 NSW in emissions GHG data inventory gas (GHG) greenhouse Australian latest The target. 2050 toward the progress is making NSW change. climate of impacts the for preparing and energy by saving bills energy their reduce clean and energy helping households and businesses is supporting NSW objectives, these with Aligning − − climate: achanging of context the in state the of wellbeing environmental and social, economic, the maximise to objectives long-term outlines framework The Framework. Policy Change Climate NSW the in change climate on intentions its out set Government 2016,In NSW the Metro. Sydney of courtesy photograph Station, Vista Bella at 131.5 million tCO 131.5at million to achieving these goals. these achieving to contribute to capital private enables Programme Bond Sustainability a net-zero NSW economy. The emissions into NSW transform to work to put be to need will capital public and private Both target. 2050 the achieve to action − − a changing climate. climate. a changing to resilient more become to NSW For 2050 To by net-zero emissions achieve 3 2 -e, 5 4 there needs to be committed committed be to needs there With GHG emissions in 2017 in emissions GHG With
is more than 28 million tCO 28million than is more 2017/18 2007/08 and between programmes CCF from savings GHG estimated total The 2016. August since holders card concession to fridges and TVs efficient energy 50,000 than appliance replacement has offer delivered more the example, For benefits. delivering already many with now underway, are programmes these savings to 2025. bill in A$5.6bn estimated an in has locked and savings energy of GWh 24,000 than more deliver will that projects supported far so has Scheme Savings Energy The conditioning. air or lighting efficient as installing such upgrades, provides financial incentives for energy efficiency Scheme Savings Energy the 2009, in Established Scheme Savings Energy NSW change. climate to resilient more be communities our help and energy clean support bills, power cut savings, 2022 energy realise to 2017 between and A$1.4bn CCF is investing 2007. in the of round established latest The was (CCF) Fund Change Climate NSW The Fund Change Climate NSW include: initiatives NSW NSW SUSTAINABILITY BOND PROGRAMME 8 2 -e. 7 6 Most of of Most
9 NSW SUSTAINABILITY BOND PROGRAMME 10 NEW SOUTH WALES TREASURY CORPORATION − − − − − − include: issuance bond the of Key characteristics Bond Green of Table Description 1: Table in as detailed 1. A$1.8bn at valued market, dollar Australian the in bond green single largest 2018, the we issued November In ISSUANCE BOND TCORP GREEN NSW SUSTAINABILITY BOND PROGRAMME − − − − − − Climate Bonds Standard project categories: Climate Standard Bonds project Certification: provider: Assurance managers: Lead ISIN: Pricing date: Maturity: Currency: Size: Coupon: type: Bond size of this Green Bond. Bond. size Green this of the exceeds A$4.6bn, totalling assets green eligible of pool 2019, the to June 30 at TCorp’s obligation As debt investors. for is available Bond Green this of details full with sheet A term under Climate the Bonds Standard. certification for requirements the Met 2. in Appendix attached Indepent Reasonable apost-issuance provided Assurance Report has also EY Guidelines. Bond Sustainability and Principles Bond Social Principles, Bond 2018 Green ICMA the with v2.1 Standard alignment and Bond Climate by the set criteria the with compliance confirming Bond, Independent Reasonable apre-issuance Assurance has provided Report EY &Poor’s. by Standard (stable) AAA and by Moody’s Aaa (stable) is rated NSW Government. NSW by the Guaranteed emissions in NSW – the second largest contributing sector after energy. after sector contributing largest second –the NSW in emissions total of 21 cent makes around up per Transport net-zero the by 2050. deliver target helps that environment alow to emissions transitioning including outcomes, network transport and customer improve to technology harness to works strategy 40-year 2016. in was ongoing, launched 2056 This Strategy Transport Future The 2056 Strategy Transport Future passenger vehicle trips produce 10 times more GHG emissions than rail and light rail in NSW. in rail light and rail than emissions GHG more 10 times produce trips vehicle passenger private average, On reduced. be will emissions and congestion road aresult, As journeys. vehicle private of instead transport public take to commuters encourage can transport public of attractiveness by the Climate Bonds Standard Board and for Programmatic Certification Certification Programmatic for and Board Standard Bonds Climate by the Low carbon transport and water infrastructure water and transport carbon Low Climate Standard Bonds Certified Limited EY Limited Futures Lynch (Australia) Merrill and New ZealandAustralia Limited Group Banking (Arranger) Bank Limited Australia National AU3SG0001878 2018 9 November 2028 15 November dollar Australian A$1.8bn 3.0% Green in relation to this annual report and it is it and report annual this to relation in 9 Expanding the accessibility and and accessibility the Expanding for the framework and this Green Green this and framework the for 10
70% and green term deposits on issue at any given point in time. time. in point any given at issue on deposits term green and bonds size sustainability all total of the exceeds pool asset the ensure to product this to applied be will cap A maximum Climate Bonds with Standard Certification Bond, Green as the assets green eligible of pool same the against earmarked are deposits these from proceeds net The sector. government local NSW the to deposits term green of issue the pilot us successfully to has enabled issuer as aprogrammatic TCorp’s position DEPOSIT TERM TCORP GREEN type Investor 1: Chart 2. 1and Charts in as illustrated world the around and Australia from We base. 15 investors new gained investor our diversify to we able were that was delighted TCorp issuance Bond Green Table of Results 2: Table in by A$767mn as detailed was 2. oversubscribed Bond Green The results Bond Green Exchange for physical (EFP) vs 10 futures vs year (EFP) physical for Exchange allocatedYield issue on Total amount price final at received bids of Total amount Total amount allocated Hedge Fund Trading Official Institution S A 14% 8% 3% 5% Chart 2: Geographic breakdown Geographic 2: Chart 82% USA U Asia Europe Australia 7% 4% 4% 3% received in August 2019. August in received NSW SUSTAINABILITY BOND PROGRAMME 41% Chart 3: Mandate type Mandate 3: Chart 13% S Light Green 43 basis points basis 43 A$2.567bn A$2.567bn A$1.8bn 3.235% 3.235% 46% 11 NSW SUSTAINABILITY BOND PROGRAMME 12 NEW SOUTH WALES TREASURY CORPORATION − − Australia (ISCA). Australia of Council Sustainability Infrastructure by the awarded rating As-Built (IS) Sustainability Infrastructure of-project whole- by a‘Leading’ as evidenced project, infrastructure this on standards practice best implementing and key developing in Sydney to Metro’s success has been This flexibility. future and resilience in appropriate builds and line, railway the of life over the risk change climate of impacts likely the addresses system Northwest Sydney Metro the of operations and build design, The 26 on May 2019. commenced per household in Australia. Passenger services levels ownership car highest the with aregion to service transport public areliable and spaces, car commuter 4,000 stations, upgraded five stations, railway new eight rail, metro new of kilometres 36 delivering Australia, in system rail metro automated fully first is the it Chatswood, to Hill Rouse from Stretching history. in Australian investment infrastructure rail urban largest –the Sydney of Metro stage first A$7.3bn, is the estimated an worth project, This Northwest. Sydney Metro towards the allocated has been Bond Green TCorp the of A$1.6bn Northwest Sydney Metro transport Low carbon and water infrastructure. transport low carbon refinance to earmarked were bond the of issuance the through raised proceeds net The USED WERE BOND GREEN THE OF PROCEEDS HOW THE NSW SUSTAINABILITY BOND PROGRAMME − are: these contracts, major construction by three achieved ratings As-Built IS ISCA ‘Leading’ by three is underpinned rating whole-of-project The this. achieve to Australia in project infrastructure major − − − Operations, trains and systems. and trains Operations, civils. and viaduct Surface, project under the ISCA scheme. ISCA the under project infrastructure As-Built an for 92.5 of score rating ‘Leading’ As-Built highest the achieved contract –this civils Tunnels stations and 11 Sydney Metro Northwest is the first first is the Northwest Sydney Metro 12
Sustainability Report 2018 Report Sustainability Sydney the see Metro information, more For − − − “ INFRASTRUCTURE SUSTAINABLE DELIVERING Some key Australian first achievements include: achievements first key Australian Some − − − Jon Lamonte, Chief Executive, Sydney Metro. Executive, Chief Lamonte, Jon spheres.” socio-economic and environmental in standards and new benchmarks set and industry, influence to ability our programme we of works, recognise Given size the and scale of our industry. government wider but within only not sector transport the in sustainability leading way the in Australia –shaping international and we practice, are best Sydney benchmarks Metro against Sydney aworld with class metro. Sydney Metro’s vision –to transform Sustainability forms of an integral part introduced to address skills gaps. skills address to introduced was Curriculum Industry Sydney Metro the and Australia in centre employment and skills infrastructure integrated first the Centre, Skills Infrastructure NSW the of establishment The traction. for used is energy minimal ensure to is optimised etc.) stopping, (accelerating, train the of operations meaning the stock rolling automated Fully areas. regional for and growth jobs creating while risk, climate mitigating and in minimisingNSW. a leader emissions Being rural in project energy renewable build new a through energy operational of offset 100% 13
. 14
The new Hills Showground Station, photograph courtesy of Sydney Metro. Sydney of courtesy photograph Station, Showground Hills new The NSW SUSTAINABILITY BOND PROGRAMME 13 NSW SUSTAINABILITY BOND PROGRAMME NSW SUSTAINABILITY BOND PROGRAMME NEW SOUTH WALES TREASURY CORPORATION
14 IS rating, receiving a Design rating of ‘Excellent’. of rating aDesign receiving rating, IS an awarded be to projects rail light three NSW’s for Transport of first Rail is the Light Newcastle The up great renewal urban opportunities. opening and Streets, Scott and Hunter reinvigorating precincts, key activity connecting centre, city the throughout option travel reliable and afrequent providing 2019, 17 on February commenced services Passenger Beach. Newcastle to district business central the through Interchange Newcastle from running system kilometre a2.7 comprises and centre city Newcastle’s revitalise to programme A$650mn the of is akey part project This Rail. Light Newcastle towards the allocated has been Bond Green TCorp the of A$100mn Rail Light Newcastle − − − − − include: benefits socio-economic and Rail key environmental Light Newcastle of precincts. activation the and connectivity community improving centre, city Newcastle the across development and renewal urban sustainable for as acatalyst project the recognises This − − − − − Australia’s first inter-modal system. Australia’s first maintenance. road and time travel congestion, road Reduced renewal. urban stimulating centre city the to access Improved and reliable services. frequent with transport, public on capacity Increased transport. of form sustainable and efficient energy An
15
sustainable power source to get it moving again.” moving it get to source power sustainable a into it turn and atram slowing of energy kinetic the harness to used be also could braking and maintenance Regenerative costs. construction reducing greatly all while people, more vastly carry can that trams taller and flexibility design more way for the opens It rail. light for limit the sky’s the mean would lines power overhead of rid “Getting innovation: as a significant rail light wireless Research Organisation acknowledges (CSIRO) and Industrial Commonwealth Scientific The wire-free. to travel it enables vehicle the of roof the on batteries and capacitor Asuper system. storage energy onboard has an vehicle rail light each where operation acatenary-free uses It system. rail light wireless Rail is Australia’s first Light Newcastle The Constance, Andrew “ SYSTEM RAIL LIGHT WIRELESS NSW Minister for Transport and Roads. and Transport for Minister NSW centre.” rail breathes new life into the city light as character unique its and Newcastle’s architecture heritage of aesthetics the will preserve Removing overhead the wires NSW SUSTAINABILITY BOND PROGRAMME 17
16 18 15 NSW SUSTAINABILITY BOND PROGRAMME 16 NEW SOUTH WALES TREASURY CORPORATION upgrade at St Marys WRP that will treat 48 ML/day ML/day 48 treat will that WRP St Marys at upgrade WRP, St Marys treatment alarge and the to WRP Hill Quakers the from pipeline transfer sludge 12-kilometre amodified plant, ML/day 38 anew with WRP Hill Quakers existing the replacing include works The processes. treatment wastewater improve to technology innovative and new incorporates also It area. the in growth for cater will that infrastructure wastewater Treatment new providing and upgraded Programme, Creek Lower South the of part forms project A$354mn Sydney. Western area of The catchment Creek South the within effluent discharge and treat, service, plants These (WRPs). plants recycling water St Marys and Hill Quakers towards the was allocated Bond Green TCorp the of A$90mn renewal and reliability process plants recycling water St Marys and Hill Quakers Treatment Programme: Creek Lower South Water infrastructure NSW SUSTAINABILITY BOND PROGRAMME Lower South Creek Treatment Program, photograph courtesy of Sydney Water. Sydney of courtesy photograph Program, Treatment Creek South Lower − − − including and technology treatment environmental benefits, innovative to wastewater its attributable scheme, rating ISCA the under rating Design ‘Excellent’ an achieved Treatment Creek Programme Lower South The generation. energy renewable and enable improve water quality production, waste reduce area, use land appropriate an in treatment wastewater by consolidating environment the to benefits long-term provide will project the Overall, effluent. of − − − carbon footprint. carbon asmaller in resulting generation, energy increased enable and movements truck biosolids reduce will Hill Quakers from system transfer apumped via WRP Consolidation of biosolids processing at St Marys demand. electricity its of cent per 69 to up self-supply to project the enables generation electricity and recovery energy thermal On-site and lifecycle. across its construction during emissions total GHG of (42 cent) tonnes per 870,000 approximately of reduction estimated An 19 : preparing us for a low carbon future. alow carbon us for preparing while footprint Sydney Water’s reduce will carbon sustainable more process treatment water make the that onsite. Adopting new technologiesrenewable electricity more by producing costs energy St Marys’ reduce help will biogas of volume increased The energy. renewable of asource biogas, of amount increased an produce to (biosolids) sludge the in matter organic use will WRP St Marys at installed be to facility cogeneration new The also to contribute a circularopportunities economy. recovery resource These efficient. cost and effective sustainable, more process treatment water makeand the recovery resource optimise that technologies new adopt Sydney mean Water can upgrades These change. soon will this but energy green generating of capability the have Hill Quakers or St Marys at WRPs neither Currently, catchment. River Nepean Hawkesbury the in value and health ecosystem improve that flows environmental for water recycled produces which WRP Advanced St Marys the to facilities these from transferred also are Wastewater flows Plans. Management Environmental and are Property managed under heritage, Aboriginal and fauna flora, native including values, environmental contain also sites two The 2056 by people million grow to over 1.5 to projected is City Parkland Western the Sydney’sIn west, PROGRAMME TREATMENT CREEK LOWER SOUTH capture and urban cooling capacity. capacity. cooling and urban capture as nutrient such services as as well ecological habitat, and parks provide will corridor Creek South green The urban design inelement and its water management. central the and City Parkland Westland the of spine as the corridor Creek South the identifies which (2018) Plan District City Western the in articulated Sydney. is further vision Greater This resilient and (2018) Plan Region Sydney Greater Government’s NSW The floods. and wastewater stormwater, managing for challenges create and waterways of health the on will place pressure catchment in the growth future meet to landscape existing the of Transformation area. catchment large Creek’s is South in City 20 . Around 80 per cent of the Western Parkland Parkland Western the of cent per 80 . Around sets the vision for a liveable, growing growing aliveable, for vision the sets
, and managing energy, water, managing efficiently. and waste and emissions carbon reducing of Plan’s priority District City Western the achieve to helping also are plants treatment Creek Lower South the to Improvements future. in own electricity its of most supply to project the enable will recovery energy conditioner. of Anaerobic wastewater digestion and soil rich as anutrient used are wastewater, that from extracted areBiosolids organic products biosolids. of production improve to St Marys at plant We hydrolysis a thermal plants. are also introducing the run to energy create to waste our by harnessing economy towards acircular Sydney Water is working plants. recycling water St and Marys Hill Quakers at including technologies using innovative processes recycling water improving is increasing wastewater and capacity treatment Sydney Water achieved. be can principles these how Creek are plants treatment demonstrating Lower South Sydney to Water’s existing Upgrades − − − − in agriculture. used 70 cent per least at with reused beneficially are hundred One cent per of biosolidsrehabilitation. and forestry agriculture, in used are Biosolids biosolids?producing of benefits environmental the are What − − − − electricity to power treatment plants. treatment power to electricity generate to used be can gas that Producing farms. on used fertilisers chemical of amount the Reducing minimise disposal to landfill. helps that resource avaluable Recycling rivers. and oceans our to solids of discharge the Minimising NSW SUSTAINABILITY BOND PROGRAMME 17 NSW SUSTAINABILITY BOND PROGRAMME 18 NEW SOUTH WALES TREASURY CORPORATION Table 4: TCorp debt unutilised as at 30 September 2019 September 30 at as Table unutilised debt TCorp 4: statement Table proceeds of Use 3: be will and estimates contain metrics reporting These bonds. sustainability and green on principles global Table in capture to outcomes intended 5are sustainability Accordingly, the operations. started haveor recently construction Table in under detailed either 3are Projects Bond. Green inaugural the against earmarked assets green the outline below tables The 2018 Green Bond assets Reporting: NSW SUSTAINABILITY BOND PROGRAMME Net position – TCorp debt unutilised debt –TCorp position Net 2019 September 30 at as allocated Term Deposits Green TCorp 2019 September 30 at as allocated Bonds Green TCorp 2019 June 30 at as projects on expended debt TCorp Description Total Total Renewal and Process Reliability Plants Recycling Water Marys St Quakers Hill and Programme: Treatment Creek South Lower Rail Light Newcastle Sydney Metro Northwest name Project
Water Sydney NSW for Transport Metro Sydney partner Delivery management wastewater water and Sustainable transportation Clean transportation Clean category ICMA GBP relevant NSW government entities and NSW Treasury. NSW and entities government NSW relevant by the provided have been costs project on Information align global with metrics principles. reporting how these of assessment an for Framework Bond Sustainability NSW the to Refer operational. fully become projects the once results actual include to refined 8,088 354 389 ,345 7, mn) (A$ cost project Estimated 22 21 90 58 100 (%) TCorp debt by financed project Share of 338 4,157 154 (A$ mn) (A$ 2019 June 30 at as projects onexpended TCorp debt 4,649 2,838 11 1,800 4,649 mn A$ 100 1,610 90 (A$ mn) (A$ allocation proceeds Bond 1,800 23 Table outcomes Sustainability 5: Newcastle Light Rail Light Newcastle Sydney Metro Northwest name Project Renewal andProcess Reliability Plants Water Recycling Marys St and Hill Quakers Treatment Programme: Creek South Lower − Operations − − − Infrastructure Infrastructure Metrics − − Construction − − − − − Construction − − − − − Operations − Operations − − − Infrastructure − − − − − − − − − − − − − − − − − − − − − − 23% decrease in GHG emissions from operations (~1,100 tCO operations from emissions GHG in decrease 23% offsets carbon as planted trees 565 landfill from diverted waste of 35%) (or tonnes 22,778 ~ 6,900 tCO ~ 6,900 57.9 ha area covered by sustainable land management systems in place in systems management land sustainable by 57.9 covered area ha Reduction of 141 of tCO Reduction hour per people 1,200 transport to Capacity built line rail new of 2.7km landscaping in used plants resistant drought and ~1 native million and demolition waste of96% recycled construction of carbon emissions20% electricity offset from construction facility trains Metro Sydney of top on installed array solar 1 MW created spaces parking bicycle 240 constructed path bicycle of 4km constructed line train new of 36km 100% offset of operational electricity needs by solar power (~134 power p.a. GWh solar by needs electricity operational of offset 100% emissions by ~102,000 tCO ~102,000 by emissions 100% of biosolids reused beneficially ML/day 48 to capacity increasing WRP Marys St at Upgrade WRP Marys St the to WRP Hill Quakers the from pipeline transfer sludge modified 12 kilometre plant ML/day 38 anew with WRP Hill Quakers existing the of Replacement 1,300 new sustainable jobs created jobs sustainable new 1,300 (at the year 2021) year the (at 33 24 32 36 2
-e p.a. reduction in GHG emissions due to decrease in private vehicle journeys journeys vehicle private in decrease to due emissions GHG in reduction p.a. -e 31 2 -e (or 4% emissions) of (or -e 2 -e 30
28 37
34
26 NSW SUSTAINABILITY BOND PROGRAMME 25 2 -e p.a.) -e 27
35
38
29 ), avoiding GHG GHG ), avoiding 19 NSW SUSTAINABILITY BOND PROGRAMME 20 NEW SOUTH WALES TREASURY CORPORATION − − − key factors: three to due Deal Finance Sustainable Best was awarded Bond Green TCorp The AWARD 2018 ACHIEVEMENT FINANCEASIA expertise. and innovation markets financial awards for industry three During the 2018-19 financial year, TCorp’s inaugural Green Bond won Awarded acknowledged and − − − projects. projects. infrastructure water and transport low-carbon to allocated were transaction the of proceeds The demand in A$2.5bn than more with closed and oversubscribed was bond the meant offshore and Australia in community investment the with brand TCorp’s strong market bond green the to breadth and depth added which duration, size deal large long and The in the Australasian debt markets. markets. debt Australasian the in excellence of reflection awards atrue are its believes and markets Zealand debt New and Australian the in participants of polling thoroughKangaNews and intensive conducts − − market participants: from votes on based awards, deal market Australian two received also Bond Green Our KANGANEWS AWARDS 2018 − − Australian Dollar Rates Bond Deal of the Year. the of Deal Bond Rates Dollar Australian Year the of Deal Sustainability Australian
− − − − − through: objectives their meeting in them assist to clients our with partnering of We history proud have and along bodies”. public other and authorities public Government, the of benefit the for services financial provide is “to Act the under remit Our sector. public NSW the for provider services financial is the TCorp (Act), (NSW) 1983 Act Treasury by the Corporation Created OUR PURPOSE achieve significant financial impact over the long term to create astronger NSW. We work in partnership within TCorp and across Government the NSW family to TCorp About − − − − − managing and liabilities. our own assets funds investing authorities and public government the from investment for funds accepting and liabilities assets authority and public government of management on advising or managing public authorities NSW and government the for finance providing balance sheet of $75bn. of NSW,of state the a with and is central the borrowing authority is Australian atop five asset manager TCorp management, under funds of $107bn public sector. With NSW the to advice and solutions management, financial management, investment TCorp provides best-in-class
solutions and advice to the NSW Government family. Government NSW the to advice and solutions management, financial To best-in-class provide OUR MISSION budget. state the of release the following NSW for rating credit AAA the reaffirming agencies major ratings with rating, credit We have also astrong clients. our of behalf on $62bn over of debt manage and agencies sector public for funds today, and generate to we bonds issue Australia in issuer as asemi-government bonds first the of one issued TCorp government. state the of behalf on bonds of form the in debt raising for responsible are NSW for authority borrowing central we the are 1983, Established THE FINANCIAL BUSINESS MARKETS (NSW). 2018 Act (NSW). Finance Sector Government aremanagement regulated transactions under the financial undertake and borrow, invest to powers Our NSW. of people the ultimately and Government NSW the help to money manage and allows us raise to which 2001 Act Corporations the under as acompany authorities and powers We capacity, legal same have the NSW SUSTAINABILITY BOND PROGRAMME (Cth), (Cth),
21 NSW SUSTAINABILITY BOND PROGRAMME 22 NEW SOUTH WALES TREASURY CORPORATION 7. 6. 5. 4. 3. 2. 1. References 38. 37. 36. 35. 34. 33. 32. 31. 30. 29. 28. 27. 26. 25. 24. 23. 22. 21. 20. 19. 18. 17. 16. 15. 14. 13. 12. 11. 10. 9. 8.
www.environment.nsw.gov.au/topics/climate-change/nsw-climate-change-fund Climate NSW Change the Fund, Government NSW See www.environment.gov.au/system/files/resources/917a98ab-85cd-45e4-ae7a-bcd1b914cfb2/files/state-territory-inventories-2017.pdf ibid. www.environment.gov.au/system/files/resources/917a98ab-85cd-45e4-ae7a-bcd1b914cfb2/files/state-territory-inventories-2017.pdf State and 2, Territory Greenhouse Gas page Inventories 2017,See Australia’s National Greenhouse Accounts www.environment.nsw.gov.au/topics/climate-change/policy-framework ClimateNSW Change Framework. Policy mattkean.com.au/news/media/ceda-speech-7th-june Managing our energy transition website. Association Markets Capital International the www.icmagroup.org/green-social-and-sustainability-bonds/ see bonds sustainability and social green, on details further For Data from the Sydney Water Property Environmental Management Plan. Management Environmental Property Water Sydney the from Data Water. Sydney by provided figures 2019, for Actual NSW. for Transport by provided Estimates breaking). regenerative Information provided (with by Sydney Water. energy traction in reduction and depot the in improvements efficiency energy to Due offsets. power green to Due NSW. for Transport by provided Estimates website. NSW for Transport the see p.10), Strategy, Network Cycleway www.transport.nsw.gov.au/projects/current-projects/newcastle-light-rail Centre City Newcastle the 17.pdf 14 to (including Rail Chapters Light 2_ Stage EIS Newcastle of details For 2013. in derived the at were travel car and estimates bus These rail, of 2. majorprojects.accelo.com/public/8eee33801a1ff2ed286a92ead426423e/06_NWRL average) Statement (national Impact intensities Environmental carbon Link Rail West projected North the and the in 97 page system See 2021. year transport wide network Sydney’s across projections shift mode on Based Environment). GHG reduction calculated using NSW’s energy emissions intensity of 0.76 tCO 0.76 of intensity emissions energy NSW’s using calculated reduction GHG www.sydneymetro.info/article/beryl-gets-go-ahead-help-power-sydney-metro-northwest website. Metro Sydney see operations of use energy annual Projected weeks 26 www.sydneymetro.info/sites/default/files/document-library/SydneyMetro_SustainabilityReport2017.pdf of 2017 aminimum for Report employment direct Sustainability no with Metro and 57, Sydney date page See start week. per their to hours 15 prior and months six the during Metro Sydney for worked not have who employees new to Refers www.isca.org.au/Ratings-Directory/Sydney_Metro_Northwest Northwest. Metro Sydney for program Rating IS www.isca.org.au/Ratings-Directory/Sydney_Metro_Northwest Northwest. Metro Sydney for program Rating IS on based 90% of atarget Against www.sydneymetro.info/sites/default/files/document-library/Sustainability_Report_Dec_2018.pdf 2018 Report Sustainability Metro Sydney 40, page See www.isca.org.au/Ratings-Directory/Sydney_Metro_Northwest Northwest. Metro Sydney for program Rating IS 3. Table in projects three the across allocation equal an have will amount This Excludes Wickham Transport Interchange. costs. financing public-private Excludes www.greater.sydney/metropolis-of-three-cities/vision-of-metropolis-of-three-cities/western-parkland-city-vision vision. City Parkland Western Water. Sydney by provided Details blog.csiro.au/supercapacitor-magic-making-tram-power-lines-disappear/ magic,Supercapacitor making tram power lines *disappear* www.aurecongroup.com/projects/transport/newcastle-light-rail Newcastle Light Rail www.transport.nsw.gov.au/newsroom-and-events/media-releases/newcastle-light-rail-goes-wire-free free wire goes Rail Light Newcastle www.downergroup.com\Content\cms\media\2019\Documents\Newsletters\Enviro-News_Issue-8_web.pdf 4EnviroNews page See www.isca.org.au/Ratings-Directory/Sydney_Metro_Northwest here. program Rating IS the See www.sydneymetro.info/sites/default/files/document-library/Sustainability_Report_Dec_2018.pdf 2018 Report Sustainability Metro Sydney 6, page See www.isca.org.au/Ratings-Directory/Sydney_Metro_Northwest_Tunnels_and_Stations_Civil civil. stations and tunnels Northwest Metro Sydney for rating ISCA website. ISCA the on available is information Further 75+). (score ‘Leading’ and 50-74); (score www.isca.org.au/Get-Involved/IS-Ratings ‘Excellent’ 25-49); (score ‘Commended’ operational and ratings: IS construction projects. design, planning, the across sustainability evaluating for system It evaluatesphases projects. of the performance sustainability the of quadruple infrastructure line bottom rating (Governance, Economic, Environmental and Social) of infrastructure comprehensive sole Zealand’s New and Australia is Scheme Rating IS The future.transport.nsw.gov.au/sites/default/files/media/documents/2018/Future_Transport_2056_Strategy.pdf Future Transport Strategy 2056 climatechange.environment.nsw.gov.au/About-climate-change-in-NSW/NSW-emissions emissions NSW Environment. and Industry Planning, of Department the by provided Figures www.environment.nsw.gov.au/-/media/OEH/Corporate-Site/Documents/Climate-change/climate-change-fund-annual-report-2017-18-180595.pdf Government. NSW 2017–18, Report Annual Fund Change Climate NSW vi, page See NSW. , Adapt Aurecon. study, case , Australia Group. Downer 2019, , July Hornsby. for Member Environment, and Energy for MP, Minister Kean Matt 2019, 7June speech, , CEDA 2056. Transport , Future NSW. for 2017, Transport April , 18
, Sydney Metro. Metro. , Sydney Metro. , Sydney . CSIROscope. 2018, June , 18 Metro. , Sydney 2 -e /MWh (estimate provided by the NSW Department of Planning, Industry and and Industry Planning, of Department NSW the by provided (estimate /MWh -e , Department of, Environment Department and Energy here.
Underground track laying on Sydney’s new Metro North West Line, photograph courtesy of Sydney Metro. Sydney of courtesy photograph Line, West North Metro new Sydney’s on laying track Underground NSW SUSTAINABILITY BOND PROGRAMME 23 NSW SUSTAINABILITY BOND PROGRAMME 24 NEW SOUTH WALES TREASURY CORPORATION APPENDIX 1 – INDEPENDENT REASONABLE ASSURANCE REPORT ASSURANCE REASONABLE 1–INDEPENDENT APPENDIX NSW SUSTAINABILITY BOND PROGRAMME Subject Subject presented below. below, meets in all material r material in meets all below, October to provide an opinion to whether an as to provide opinion Impact Report Bond 2019 Sustainability Sustainability Sustainability Bond Framewor Bond Sustainability to inrelation engagement assurance Ernst & (‘EY’) Ernst Young Scope Independent Liability limited by ascheme approved underProfessional Standards Legislation A member firm ofErnst & Young Limited Global Management • • • Framewor that sets out: Sustainability described in p TCorp’s Subject M Framewor , in all material respects. all material in Framewor , BondGuidelines,self Sustainability andTCorp’s opinion TCorp’s our in procedures, onbased our Guidelines minimum assets and projects Bond Framewor Sustainability and nominated Based on our reasonable assurance procedures, as described in this this asin procedures, described assurance reasonable onBased our Assurance opinion ost Bond. performance ofthe and environmental usethe on ofproceeds Proceduresfor reporting for inclusionBond.the in evaluation andselection Processesfor project raised from the Bond management ofproceeds proceeds and relatedto the use Policies and procedures issuance process, as
Sustainability
M 201 TCorp’s atter
atter
c
TCorp’s and the CBI Climate Bond CBIStandard Climate andthe riteria
C Bond 9
onclusion Bond ,
the and Criteria bond
, management of proceeds, and reporting re uiremen andreporting of, proceeds, management
Reasonable Bond
Subject Matter Subject of of of post
ha
post .
TreasuryCorporation of NSW s
issuance performed a a performed
issuance • • • Criteria • • GPO BoxGPO 2646 Sydney NSW2001 SydneyNSW 2000 Australia 20 Ernst Young &
espects the espects 0 GeorgeStreet ,
comprising the Water Infrastructure EligibilitySector for Standard Sector TheBond Climate Low Eligibility Criteriafor Standard TheBond Climate Standard TheBond Climate Framewor Sustainable Bond documentedTCorp’s in procedures, as policies and TCorp’s own Guidelines (‘SBG’) Sustainability Bond Association’s Capital Mar et The Bond Principles (‘SBP’) (‘GBP’) Bond Principles
TCorp’s TCorp’s
and TCorp’s and TCorp’s
process detailed detailed International ,
Carbon Transport
Assurancetothe Report as ofas 2 TCorp’s , and and , reasonable Services
Sector (‘CBS’)
2018 in order
C
the
in relation to its 2018 to 2018 its relation in internal riteria riteria (‘ICMA’)
5
(i Green
Social Social nclusive of sectoral criteria sectoral of nclusive
declared criteria stated in TCorp’sSustaina in stated criteria declared v2.1 Pty Limited Impact Report meets the re uirements of the ICMA of the the re uirements meets Impact Report ,
Criteria the with presented in accordance is matter thesubject to whether as conclusion assurance supportto the andrecords i the with in accordance matter subject the of presentation preparation and thecollection, responsible for Our responsibility is to express a a express to is responsibility Our Responsibility Practitioner’s Assurance (‘ASAE 3000’) Information Financial istorical of Reviews Than Auditsor Other Engagements Assurance 3000 ( Engagements Assurance Standard on Australian the with accordance in performed and been has planned engagement of management The Responsibility Management Subject M • • • , disclosed correctly) extent that they were Impact Report (to the 2019 Sustainability Bond disclosed TCorpwithin The impactdata Impact Report 2019 Sustainability Bond disclosed TCorpwithin The assetvalues Impact Report Sustainability Bond TCorp disclosures within The structure of, and Sustainability
meet statement , in all material aspects material in all ,
Criteria ts of the ofts the atter (‘ ’
s s
TCorp’ 2019 ey.com + Fax: + Tel: the project identification, project the ) nternal controls that are designedare that controls nternal
in in . Green
Executive
61 2 92482 61 5555 all materialrespects. , as of of as 61 2 924861 2 5959
ICMA Sustainability Bond ICMA Sustainability
/au
and for maintaining ade uate maintainingand ade uate for Bond, inclusive of Bond, inclusive
TCorp
) 2 Bond
5 ’ ’ s s
October
issuance bility Bond bility (‘Management’) (‘Management’) Criteria • •
. Our assurance assurance Our . and and
Framewor Sustainable Bond documentedTCorp’s in procedures, as policies and TCorp’sinternal own Bond Principles (‘SBP’) (‘GBP’) Bond Principles comprising the Guidelines (‘SBG’) Sustainability Bond Association’s (‘ICMA’) Capital Mar et The 201 revised) revised) reasonable
its
Further, International 9
process. process.
, , and, the Social
i n our
is
Green
,
• • • • to not limited butwere included, The Approac ur Liability limited by ascheme approved underProfessional Standards Legislation A member firm ofErnst & Young Limited Global our conclusion. for a basis to provide and appropriate sufficient is obtained have we evidence e believethe that controls. provi to designed procedures, our of extent and nature the determining when controls internal Management’s of effectiveness the considered we hile error. or duefraud to whether data, activity specific the of misstatement m of risk the judgementincluding practitioner’s assurance on the depend conclusion. A Assurance o e el as the basis for for thebasis as assurance of level obtain meaningful to a us evidence testing controls analytical, and applying makingof enquiries consists reasonable reasonable
procedures issuesrelated to group levelpersonnel to understand key Interviewing selectedbusiness unit and the within Bond for in inclusion matter matter ma assertions supporting for Reviewing selected Confirming of the 2018 2018 the of established by Assessing policies proceduresand assurance procedures procedures assurance nominated projects, documentation and
againstUse the of Proceeds - gathering procedures sufficient for for sufficient procedures gathering
The procedures performed procedures The these procedures were procedures these
CBS, SBP and GBP
assurance engagement engagement assurance eligibility of Sustainability providing TCorp de assurance on internal on internal de assurance TCorp TCorp
performance information
’ related toissuance the s 2018 2018 s ’ we undertookwe s policiesand a nominated projects ,
positive de in the subject in the de and other
Bond
Sustainability aterial aterial
form of of form not C
riteria
TCorp’s 201 TCorp’s place as place as li is assurance Our statements. financial include statutory Sustainability 2018 limited TCorp’s to was assurance Our groups. stakeholder by different differently could beand subjective interpreted is Standard and the 000 ASAE to adherence inally, entity. byreporting the developed are that methods anddefinitions estimation compiled using data source against beassured to information require which standards against no with associated risks inherent additional are There detected. and not be non or error fraud, that possible and is it examined being information the testing of selective based on are engagements A • • • • There are inheren are There i itations • • ssurance n - information associatedthe linksin appropriatelytranscribed fromthe individual impact data impactindividual ha valueswere disclosed accurately, and that requirementsof framework, the asset that itsthat structure disclosures and met the Reviewingand report checking impact the performed accuracy the Checking of calculations supporting evidencesupporting wereindicatedfunctioning as and obt Confirming internalsystems and process key assumptions Obtaining and reviewing evidenceto support for thevalue of the bond debt to understand andbasis integrity the Confirming t assertions r Seeking management financial information financial including at 2 at
for example, assurance example, assurance for 8
mited to policies and procedures in and procedures mited policies to Bond Bond
Sustainability
October 201 October ’. he maximum potentialvalue maximum he of
t limitations in performing limitations t post
and other dataand other NSW SUSTAINABILITY BOND PROGRAMME - -
compliance may occur may occur compliance issuance ‘ source of epresentationkey on
Bond.
, d
after
assurance over been
, Climate Bond Bond Climate
and not did
reporting reporting issuance of of issuance
aining aining
es 2
25 NSW SUSTAINABILITY BOND PROGRAMME 26 NEW SOUTH WALES TREASURY CORPORATION APPENDIX 1 – INDEPENDENT REASONABLE ASSURANCE REPORT (CONTINUED) REPORT ASSURANCE REASONABLE 1–INDEPENDENT APPENDIX NSW SUSTAINABILITY BOND PROGRAMME Ernst &Ernst Young engagement assurance this for e perience and competencies independence Professional for Ethics e APES ith accordance n Tea Assurance an n epen ence ur purpose any third party for appropriate are riteria the hether madeto is as o statement o n ris its Sustainability may plac any suchthird party Any reliance organisation person any or other any purposefor other or to any responsibility acceptassume or orp e do not therefore agreed ith as engagement this for reference orp the to is activities assurance our inperforming responsibility ur Report o se Liability limited by ascheme approved underProfessional Standards Legislation A member firm ofErnst & Young Limited Global h avemet the
only and in accordance ith the terms of of terms the ith in accordance and only
ur team has the re uired re uired the team has ur ond ond
re uirements re uirements E ecutive post A Sydney Partner arrel Adam ccountants including on including ccountants issuance is entirely at at entirely is issuance
ctober
and anagement e on the on the e e can confirm can confirm e of of Australia
the odethe of
of of
available which may change without notice. notice. without may change which available is made material the date the as at TCorp’s judgement constitute material this in contained opinions and estimates Any results. future of indication or guarantee a is not performance Past events. future predict or forecast to intended is not material This may located. be person the which in law any in jurisdiction applicable with accordance in ratings credit receive to permitted otherwise (b) and Act, 7.9 or 6D.2 Corporations the of Part under required is not disclosure whom of respect in investor other or investor investor, professional asophisticated also and Act 761G Corporations the of section of meaning the within client” (a)are a“retail not that investors to only distribution for are ratings Credit agency. rating assigning by the any time at withdrawal or suspension revision, to may subject and be securities, and bonds buy, to hold or sell a recommendation not are they document, this in referenced are ratings credit Where document. this on reliance or of use of as aresult incurred costs or loss damage, expense, any for liability and responsibility all disclaims TCorp by law permitted To extent Act. the Securities US the of requirements registration the from exempt unless of, persons, US benefit or account the for or to, or States United the within any time, at transferred, or delivered sold, offered, may be not Accordingly, securities Act. Securities US the under registered be not will and have not securities and bonds particular, In given. so be to is unlawful it whom to any to person given or sent may be not (iii) and disseminate, or send so to is unlawful it which in any jurisdiction indirectly, or directly in, disseminated or sent may be not (ii) any securities, buy to offer an of solicitation the or sell to offer an constitute not does (i) and document, offering securities or Memorandum Information an is not This objectives. investment account into take not does and only purposes information for (“TCorp”) Wales Treasury Corporation South by New provided is document this in presented information This DISCLAIMER without the specific written consent of TCorp. of consent written specific the without by any process any in form transmitted or distributed broadcast, framed, to, linked party, athird to uploaded adapted, may reproduced, be report this in material no laws, applicable other or (Cth) 1968 Act Copyright the under browser, your on website as permitted or TCorp the on report the viewing for necessary where Except Corporation. Wales Treasury South by New licensed or owned is report this in contained material the in Copyright 2019 Wales Treasury Corporation) South (New © TCorp NSW SUSTAINABILITY BOND PROGRAMME 27 NSW SUSTAINABILITY BOND PROGRAMME TCorp (New South Wales Treasury Corporation) ABN 99 095 235 825 Level 7 Deutsche Bank Place 126 Phillip Street Sydney NSW 2000
Telephone +61 2 9325 9325 Facsimile +61 2 9325 9333 www.tcorp.nsw.gov.au