Project Details
Project
BDO Sustainable Finance Framework Second-Party Opinion
Client
BDO Unibank
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Philippines
Evaluation Date
Dec 2020
Evaluation Summary
Sustainalytics is of the opinion that the BDO Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Loan Principles 2020, and the ASEAN Sustainability Bond Standards 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable energy, Green Buildings, Clean Transportation, Resource Efficiency and Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Sustainable Water and Wastewater Management, Employment Generation, and Food Security – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and the ASEAN Sustainability Bond Standards. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 8, 11, 12 and 15.
PROJECT EVALUATION/SELECTION
BDO Sustainable Finance Desk will be responsible for identifying, qualifying, evaluating and recommending potential projects to be included in the Sustainable Finance Portfolio. In addition to being assessed against the eligibility criteria of the Framework, projects will undergo a risk assessment of their environmental and social impact. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
BDO will manage net proceeds using a portfolio approach, and in case any proceeds remain outstanding these will be held in accordance with the Bank’s liquid management policy and invested in short-term liquid instruments. The Sustainable Finance Desk will be in charge of the management and allocation of proceeds. This is in line with market practice.
REPORTING
BDO will report its allocation of proceeds on its website on an annual basis until full allocation. The report will contain aggregated details on the allocation of net proceeds. In addition, the Bank is committed to reporting on relevant environmental and social impact metrics. Sustainalytics views BDO’s allocation and impact reporting as aligned with market practice.