Second-Party Opinion Download

Sustainalytics is of the opinion that the Arbejdernes Landsbank Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation and Green Buildings – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.

PROJECT EVALUATION AND SELECTION

Arbejdernes Landsbank has established a Green Bond Committee which is responsible for evaluating and selecting projects that are in line with the Framework’s eligibility criteria. Arbejdernes Landsbank has an internal corporate sustainability policy, which is applicable to all allocation decisions made under the Framework. Sustainalytics is of the opinion that Arbejdernes Landsbank has risk management systems in place to identify and manage environmental and social risks associated with relevant projects. This is in line with market expectation.

MANAGEMENT OF PROCEEDS

Arbejdernes Landsbank’s Green Bond Committee will be responsible for the management of proceeds and will track the proceeds using internal tracking systems. Arbejdernes Landsbank has communicated to Sustainalytics that it intends to fully allocate proceeds within 12-24 months of issuance. Pending allocation, unallocated proceeds will be held in accordance with Arbejdernes Landsbank’s liquidity management policy. Sustainalytics considers this process to be in line with market practice.

REPORTING

Arbejdernes Landsbank commits to report on allocation of proceeds and, on a best-efforts basis, on the corresponding impacts in its Green Bond Investor Report and make it available on its website on an annual basis. Allocation reporting will include the total outstanding green bonds and the amount of proceeds allocated at the end of the reporting period, a per category breakdown of the eligible green asset portfolio, and the ratio of new financing to refinancing. Arbejdernes Landsbank is also committed to reporting on relevant impact metrics. Sustainalytics views Arbejdernes Landsbank’s allocation and impact reporting as aligned with market practice.