Project Details
Project
Banco Bradesco S.A. Sustainable Finance Framework Second-Party Opinion (2022)
Client
Banco Bradesco S.A.
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Sustainable agriculture; Clean transport; Green buildings; Water/waste water management; Pollution prevention and control;
Location
Brazil
Evaluation Date
Jan 2022
Evaluation Summary
Sustainalytics is of the opinion that the Banco Bradesco S.A. Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social 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, Sustainable Crops, Sustainable Transportation, Green Buildings, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Financial Inclusion, and Digital Inclusion – are aligned with those recognized by the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to contribute to the transition to a low-carbon economy and support the socio-economic development of Brazil and to advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 8, 9, 11, 12, and 15.
PROJECT EVALUATION / SELECTION
Banco Bradesco S.A.’s Corporate Sustainability department will be responsible for the project evaluation and selection process. Banco Bradesco S.A. has adopted an internal Social and Environmental Risks Standard which is applicable to all allocation decisions made under the Framework. Sustainalytics considers this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Banco Bradesco S.A.’s Treasury Department will be responsible for the allocation and management of bond proceeds. Banco Bradesco S.A. intends to allocate the bond proceeds within 36 months after each issuance. The unallocated proceeds will be temporarily held or invested in cash or cash equivalents. This is in line with market practice.
REPORTING
Banco Bradesco S.A. intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include project-level allocation details for project financing and category-level allocation details for corporate financing, period of reporting, total disbursements made in that period, and the balance and temporary use of unallocated proceeds. Banco Bradesco S.A. is also committed to reporting on relevant quantitative impact and has provided indicative metrics within the Framework. Sustainalytics views Banco Bradesco S.A.’s allocation and impact reporting as aligned with market practice.