Project Details
Project
Banorte Green Bond Framework Second-Party Opinion (English)
Client
Banco Mercantil del Norte S. A.
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Energy efficiency; Food security; Natural resources/land use management; Water/waste water management; Affordable basic infrastructure; Affordable housing; Clean transport;
Location
Mexico
Evaluation Date
May 2020
Evaluation Summary
Sustainalytics is of the opinion that the Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Natural Resources and Biodiversity, (iv) Sustainable Mobility, and (v) Water Management – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 11, 14 and 15.
PROJECT EVALUATION/SELECTION
Banorte’s ESG Risk Group will identify and propose projects that fall within the Eligible Green Categories. The Green Bond Working Group, comprising members of the Department of Sustainability and Responsible Investment, and of the Department of Treasury will have final approval. Sustainalytics considers the project selection process to be line with market practice.
MANAGEMENT OF PROCEEDS
Banorte’s Sustainability Team will be in charge with overseeing bond proceed allocation. Pending allocation, net proceeds will be temporarily invested in accordance with preapproved investment policies. Banorte’s processes for management of proceeds is in line with market practice.
REPORTING
Banorte intends to report allocation proceeds including net proceeds raised, amount of proceeds allocated per category, amount used for financing or refinancing, and total amount of unallocated proceeds, on its website and on an annual basis until bond maturity. In addition, Banorte is committed to reporting on relevant impact key performance indicators. Sustainalytics views Banorte’s allocation and impact reporting as aligned with market practice.