Project Details
Project
Banco BTG Pactual Green, Social and Sustainable Financing Framework Second-Party Opinion
Client
Banco BTG Pactual
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Energy efficiency; Water/waste water management; Clean transport; Green buildings; Pollution prevention and control; Natural resources/land use management; Affordable housing; Affordable basic infrastructure; SME finance and microfinance;
Location
Brazil
Evaluation Date
Nov 2020
Evaluation Summary
Sustainalytics is of the opinion that the Banco BTG Pactual Green, Social and Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018 (SBG). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds Renewable Energy, Energy Efficiency, Sustainable Water and Wastewater Management, Clean Transportation, Green Buildings, Affordable Housing, and Affordable Basic Infrastructure are aligned with those recognized by the Green Bond Principles 2018 (GBP), Social Bond Principles 2020 (SBP), and Green Loan Principles 2020 (GLP). Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6,7,9, and 11.
PROJECT EVALUATION/SELECTION
Banco BTG Pactual will set up a dedicated committee to evaluate and select projects to ensure their alignment with the criteria of this Framework. Sustainalytics considers the project selection process in line with market practice
MANAGEMENT OF PROCEEDS
The Bank’s Treasury department will be responsible for managing proceeds and will allocate them to new projects or existing projects commenced within the last 36 months preceding issuance. The Bank intends on allocating proceeds from issuance in the first 36 months from date of issuance. Pending allocation, proceeds will be managed in accordance with the Bank’s regular liquidity practices. Sustainalytics considers this to be aligned with market practice.
REPORTING
Banco BTG Pactual intends to report allocation proceeds on its website on an annual basis until full allocation on a project-portfolio basis. In addition, Banco BTG Pactual is committed to reporting on relevant impact metrics. Sustainalytics views Banco BTG Pactual’s allocation and impact reporting as aligned with market practice.