Project Details
Project
Aflac Incorporated Sustainability Bond Framework Second-Party Opinion
Client
Aflac Incorporated
Project Type
Sustainability Bond/Loan
Industry Group
Insurance
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Clean transport; Water/waste water management; Pollution prevention and control; Socio-economic advancement;
Location
U.S.
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the Aflac Incorporated Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, and Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds − Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, Sustainable Water Management, Pollution Prevention and Control, Socio-Economic Advancement and Empowerment, and Communities − are aligned with those recognized by both the Green Bond Principles 2018 and Social Bond Principles 2020. 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, 6, 7, 8, 9, 11, and 12.
PROJECT EVALUATION/SELECTION
Aflac Incorporated’s internal process in evaluating and selecting projects is overseen by the Sustainability Bond Council made up of representatives from Aflac’s Global Investments and Treasury teams as well as senior management who support the Company’s ESG initiatives. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Aflac Incorporated’s Sustainability Bond Council will be responsible for tracking and monitoring the allocation of proceeds in line with the eligibility criteria. The Company intends to reach full allocation within 24 months of bond issuance. Unallocated proceeds will be held in cash or cash equivalents or other liquid marketable instruments. This is in line with market practice.
REPORTING
Aflac Incorporated intends to report on the allocation and impact of proceeds on its website annually until full allocation. Allocation reporting will include the amount of net proceeds, the amount allocated to each eligible category, and the balance of unallocated proceeds. In addition, the company is committed to reporting on relevant impact metrics, where feasible. Sustainalytics views the allocation and impact reporting as aligned with market practice.