Project Details
Project
Banca Popolare di Sondrio Green Bond Framework Second-Party Opinion (2023)
Client
Banca Popolare di Sondrio
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Clean transport; Energy efficiency; Natural resources/land use management; Pollution prevention and control; Water/waste water management;
Location
Italy
Evaluation Date
Oct 2023
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Clean Transportation, Energy Efficiency, Environmentally Sustainable Management of Living Natural Resources and Land Use, Pollution Prevention and Control, Sustainable Water and Wastewater Management – 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 2, 6, 7, 9, 11, 12 and 15.
PROJECT EVALUATION AND SELECTION
Banca Popolare di Sondrio’s internal process of evaluating and selecting projects will be managed by its Sustainability Committee. Banca Popolare di Sondrio’s ESG Credit Policy and Risk Management Framework will be applicable to all the allocation decisions made under the Framework. Sustainalytics considers the risk management systems to be adequate and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Banca Popolare di Sondrio’s CFO Area (Funding and Collateral Operations) will be responsible for the allocation of proceeds and tracking the process using an internal system. Banca Popolare di Sondrio intends to reach full allocation within 36 months of issuance. Pending allocation, unallocated proceeds will be invested in cash or cash equivalents or other liquid marketable instruments, in line with the Bank’s liquidity management policies, and to the extent possible in Green, Social and Sustainability Bonds. Sustainalytics considers this to be in line with market practice.
REPORTING
Banca Popolare di Sondrio intends to report on the allocation of proceeds on its website on an annual basis until it is fully allocated. Allocation reporting will include the total amount of proceeds allocated to eligible projects, share of financing versus refinancing, the amount of unallocated proceeds, the distribution of total eligible projects per category and the geographical distribution of eligible projects. In addition, Banca Popolare di Sondrio is committed to reporting on relevant impact metrics. Sustainalytics views Banca Popolare di Sondrio’s allocation and impact reporting as aligned with market practice.