Project Details
Project
Banco Sabadell Sustainable Financing Framework Second-Party Opinion (2024)
Client
Banco Sabadell
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Energy efficiency; Clean transport; Pollution prevention and control; Circular economy adapted products, production technologies and processes; Water/waste water management; Natural resources/land use management; Health; Education; Access to essential services; Affordable housing; Affordable basic infrastructure; Employment generation and Socio-economic empowerment;
Location
Spain
Evaluation Date
Oct 2024
Evaluation Summary
Sustainalytics is of the opinion that the Banco Sabadell Sustainable Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by 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 3, 4, 6, 7, 8, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
Banco Sabadell’s business units will identify eligible projects, which will then be reviewed by the Bank’s risk management division. Banco Sabadell’s Investments Management and Funding Division (IMFD) will propose eligible projects to the Sustainability Committee, which will have final responsibility for project evaluation and tracking. Banco Sabadell has in place processes to assess environmental and social risks pertaining to the projects. Sustainalytics considers this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Banco Sabadell’s IMFD will be responsible for managing, monitoring and reporting on outstanding issuances. The net proceeds will be tracked using an internal register and will be allocated within 24 months of issuance. Pending full allocation, unallocated proceeds will be temporarily held in cash, cash equivalents or liquid marketable sustainable instruments from other European issuers that are in line with the Bank’s investment guidelines and that follow the Framework’s exclusionary criteria. Sustainalytics considers this process to be in line with market practice.
REPORTING
Banco Sabadell commits to report on the allocation and impacts of proceeds on an annual basis until full allocation. These reports will be made publicly available on the Bank’s website. Allocation reporting will include the following information: i) amount of net proceeds; ii) details of the proportion of allocated proceeds and the balance of unallocated proceeds, if any; and iii) a category-level breakdown of allocated proceeds and mapping of allocated proceeds to the UN SDGs. Sustainalytics views Banco Sabadell’s allocation and impact reporting as aligned with market practice.
Alignment with the EU Taxonomy
Sustainalytics has assessed the green activities in the Framework for alignment with the EU Taxonomy’s criteria for Substantial Contribution (SC) to its environmental objectives and Minimum Safeguards. For more details, please see Section 1 and Appendix 1.