ANZ SDG Bond Framework Second-Party Opinion
Australian and New Zealand Banking Group Limited (ANZ)
Use of Proceeds
Sustainalytics is of the opinion that the ANZ SDG Bond 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 eligible use of proceeds related to UN Sustainable Development Goals (SDGs) – (i) Good Health and Wellbeing, (ii) Quality Education, (iii) Clean Water and Sanitation, (iv) Affordable and Clean Energy, (v) Decent Work and Economic Growth (vi) Industry, Innovation, and Infrastructure, (vii) Reduced Inequalities (viii) Sustainable Cities and Communities, (ix) Responsible Production and Consumption, (x) Climate Action, (xi) Life on Land – are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and the Sustainability Bond Guidelines. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts while advancing the selected SDGs, namely SDG 3, 4, 6, 7, 8, 9, 10, 11, 12, 13 and 15.
ANZ has a dedicated SDG Bond Working Group (SBWG) who will be responsible for overseeing the project evaluation and selection process. The SWBG is chaired by the Head of Sustainable Finance and is comprised of senior representatives from ANZ’s Group Treasury, Capital Markets & Bond Syndicate and Sustainable Finance teams. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
ANZ uses its internal reporting systems to track eligible assets for ANZ SDG bonds. In addition, the Bank has established a register that includes all eligible assets. Pending allocation, the proceeds may be invested in cash or, as per the bond agreement program, in Government or Semi-Government Bonds. Unallocated proceeds will be disclosed as part of ANZ’s semiannual reporting. This is in line with market practice.
ANZ has committed to publicly providing semi-annual reporting on use of proceeds and annual impact reporting, until the maturity date of the bonds. Allocation reporting will include information such as a summary of eligible assets and their contribution to the SDGs, while impact reporting will draw on several qualitative and quantitative indicators. Sustainalytics views ANZ’s allocation and impact reporting as aligned with market practice.