Project Details
Project
BT Group Sustainable Finance Framework Second-Party Opinion (2023)
Client
Banca Transilvania S.A.
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Clean transport; Natural resources/land use management; Employment generation and Socio-economic empowerment; Health; Education;
Location
Romania
Evaluation Date
Nov 2023
Evaluation Summary
Sustainalytics is of the opinion that the BT Group Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Clean Transportation, Environmentally Sustainable Management of Living Natural Resources and Land Use, Employment Generation, Access to Healthcare and Access to Education– are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 7, 8 and 11.
PROJECT EVALUATION AND SELECTION
Banca Transilvania’s Sustainable Finance Working Group is responsible for evaluating and selecting loans in line with the eligibility criteria. Banca Transilvania has a process in place that evaluates the environmental and social risks associated with eligible projects. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The Sustainable Finance Working Group will be responsible for the management and allocation of proceeds and will track the proceeds using an internal tracking system through a portfolio approach. Banca Transilvania intends to allocate proceeds in full within 24 months of issuance. Pending full allocation, proceeds will be temporarily held in BT Group’s liquidity portfolio, in cash or other short-term and liquid instruments. This is in line with market practice.
REPORTING
Banca Transilvania commits to report on allocation of proceeds on its website on an annual basis until full allocation. The allocation reporting will be on an aggregate basis for each use of proceeds category. In addition, Banca Transilvania intends to report on relevant impact metrics. Sustainalytics views Banca Transilvania’s allocation and impact reporting as aligned with market practice.