Second-Party Opinion Download

Sustainalytics is of the opinion that the Bank Australia Sustainability Bond Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Green and Social Bond Principles 2018 and the Sustainability Bond Guidelines. Although the bond is not exclusively project-based, Sustainalytics considers the range of eligible projects to have positive environmental or social impacts and to advance the UN Sustainable Development Agenda.

PROJECT EVALUATION/SELECTION

Bank Australia’s Responsible Banking Steering Committee (RBSC), consisting of representatives from across the company’s business units, will be responsible for evaluating and selecting projects. The RBSC will ensure that all eligible projects are in line with the Bank’s Responsible Banking Policy. This process is in line with market practice.

MANAGEMENT OF PROCEEDS

Bank Australia will track the proceeds of the sustainability bond in its internal reporting system to ensure that proceeds are allocated to eligible assets. Pending allocation, proceeds may be invested in Australian government securities. As well, Bank Australia has obtained pre-issuance assurance from EY to confirm that allocation of proceeds is done in accordance with the Sustainability Bond Framework. This is in line with market practice.

REPORTING

Bank Australia has committed to reporting on the allocation of proceeds semi-annually, with impact information made available annually, as part of their corporate reports. Bank Australia has proposed an indicative list of relevant impact metrics that it will report on a best effort basis. The Bank’s reporting commitments are in line with market practice.