Project Details
Project
BNDES Sustainability Bond Framework Second-Party Opinion (2021)
Client
Banco Nacional de Desenvolvimento Econômico e Social (BNDES)
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Water/waste water management; Pollution prevention and control; Clean transport; Natural resources/land use management; Health; Education; SME finance and microfinance;
Location
Brazil
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the BNDES Sustainability Bond
Framework is credible and impactful and aligns with the Sustainability
Bond Guidelines 2018, Green Bond Principles 2018, and Social Bond
Principles 2020. 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, Pollution Prevention and Control, Clean Transportation, Environmentally Sustainable Management of Living Natural Resources and Land Use, Access to Essential Services - Health, Access to Essential Services - Education, and MSME Financing and Microfinance – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the provision of financing in eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7, 8, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
BNDES has articulated a project evaluation process that begins with its internal social and environmental risk management process. Projects are then reviewed and approved by Superintendents from the Bank’s Financial, Public Management, Socio-Environmental and Operational divisions based on the established eligibility and exclusionary criteria. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
BNDES is committed to monitoring its sustainability bond proceeds through its internal tracking system.
Pending
allocation to eligible projects, the net proceeds of the bonds will be
held in cash, cash equivalents or Brazilian government securities. This
process is in line with market practice.
REPORTING
BNDES
intends to report on allocation of proceeds on an annual basis until
full allocation. Additionally, the Bank commits to reporting on relevant
quantitative outcome and impact metrics.
Sustainalytics views BNDES’ allocation and impact reporting as aligned with market practice.