Project Details
Project
Banco Sabadell SDG Bond Framework Second-Party Opinion
Client
Banco Sabadell
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Spain
Evaluation Date
Jun 2020
Evaluation Summary
Sustainalytics is of the opinion that the Banco Sabadell SDG Bond Framework aligns with the Green Bond Principles 2018, Social Bond Principles 2020 and Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Pollution Prevention and Control, Sustainable Water Management, Energy Efficiency, Clean Transportation, Green Buildings, Access to Essential Services, Affordable Housing and Employment Generation – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 3, 4, 6, 7, 8, 11 and 12.
PROJECT EVALUATION/SELECTION
Banco Sabadell’s project evaluation and selection process is managed by the Sustainability Committee. Business Units identify potential projects, which are then screened by the Risk Management Division to ensure eligibility. The Investments and Financing Management Division will then propose a portfolio to the Sustainability Committee for final verification. Sustainalytics notes the Issuer’s process is clearly defined and is aligned with market best practice.
MANAGEMENT OF PROCEEDS
Management of proceeds will be handled by the Investments and Financing Management Division. Proceeds will be tracked via an internal system. Banco Sabadell intends to allocate proceeds within two years of issuance. Unallocated proceeds may be temporarily invested in other green bonds aligned with the Banks’s internal investment guidelines. This process is aligned with market practice.
REPORTING
Banco Sabadell intends to report on allocation and impact on an annual basis, on its website, until full allocation. Allocation reporting will include the total amounts allocated, the percentage of financing vs refinancing, the share of unallocated proceeds and a breakdown of proceeds allocated to eligible categories. Impact reporting will include relevant impact metrics. This process is aligned with market practice.