Project Details
Project
Íslandsbanki Sustainable Financing Framework Second-Party Opinion (2020)
Client
Íslandsbanki
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Iceland
Evaluation Date
Oct 2020
Evaluation Summary
Sustainalytics is of the opinion that the Íslandsbanki Sustainable Financing Framework is credible and impactful and aligns with the Green Bond Principles 2018, Social Bond Principles 2020 and Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The 18 eligible categories1 for the use of proceeds are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 5, 6, 7, 8, 9, 11, 12, 14, and 15.
PROJECT EVALUATION/SELECTION
slandsbanki’s process in evaluating and selecting projects is managed by the Sustainability Steering Committee (SSC). Eligible loans must comply with the eligibility criteria included in the Framework. The Credit Committee is responsible for final loan approval. Based on these elements, Sustainalytics considers this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Íslandsbanki’s process for management of proceeds is overseen by the Bank’s Treasury. Proceeds will be allocated on a portfolio basis. Íslandsbanki will track allocation using a Sustainability Registry for its Sustainability Instruments. Any unallocated proceeds will be temporarily held and/or invested following Íslandsbanki’s own discretion in its liquidity portfolios. Sustainalytics considers this process to be in line with market practice.
REPORTING
Íslandsbanki intends to report on the allocation of proceeds on its website on an annual basis. The allocation reporting will include outstanding amounts of issued Sustainability Instruments, total allocation to each eligible category, contributing to the balance of Eligible Assets in the Sustainability Registry, total unallocated proceeds, and share of financing vs. refinancing. In addition, Íslandsbanki is committed to reporting on relevant impact indicators. Sustainalytics considers this process to be in line with market practice.