Second-Party Opinion Download

Sustainalytics is of the opinion that the Banorte Sustainable Bonds 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, Natural Resources and Biodiversity, Sustainable Mobility, Water Management, Affordable Basic Infrastructure and Access to Essential Services, Affordable Housing and Food Safety – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 14, and 15.  

PROJECT EVALUATION / SELECTION

Banorte’s ESG Risk Group will identify and propose projects that fall within the eligible green and social categories. The Sustainability Bond Working Group, comprised of members of the Department of Sustainability and Responsible Investment and the Department of Treasury, will have final approval. Banorte has a dedicated Social and Environmental Risk Management System applicable to all allocation decisions made under the Framework. Sustainalytics considers this process to be strong and to be aligned with market best practice. 

MANAGEMENT OF PROCEEDS

Banorte’s Treasury team and Sustainable Bonds Working Group will be responsible for tracking and allocating the proceeds through an internal tracking system. The Bank intends to allocate proceeds within 24 months post-issuance for new projects and a lookback period of 24 months or less for existing projects. Pending allocation, net proceeds will be temporarily invested as per preapproved Treasury investment policies. Banorte’s processes for the management of proceeds is in line with market practice. 

REPORTING

Banorte intends to report on the allocation of proceeds and impact of proceeds on its website annually and until the bond’s maturity date. Allocation reporting will include net proceeds raised, amount of proceeds allocated per category, the amount used for financing or refinancing, and the total amount of unallocated proceeds. In addition, Banorte is committed to reporting on relevant impact key performance indicators. The allocation reporting will be audited yearly by a third party to ensure compliance with the Framework’s eligible categories. Sustainalytics views Banorte’s allocation and impact reporting process as aligned with best market practice.