Second-Party Opinion Download

Sustainalytics is of the opinion that the Bonava Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds – Green and Energy Efficient Buildings – is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 11. 

PROJECT EVALUATION AND SELECTION

Bonava’s Green Finance Committee has been in place since 2020 and is responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The committee is chaired by the Group Head of ESG Control and Reporting and includes members from Bonava’s Treasury. Bonava has a standard due diligence procedure and decision-making process to identify and manage environmental and social risks commonly associated with the financed projects, which apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

The Green Finance Committee will be responsible for the management of proceeds and will track allocation in a green register using a portfolio approach. Pending full allocation, unallocated proceeds may be temporarily placed in a liquidity reserve and managed accordingly by Bonava. This is in line with market practice. 

REPORTING

Bonava will report on allocation of proceeds and the impact of the green projects, publishing a report on its website on an annual basis until full allocation. Allocation reporting will include a summary of green debt developments, the outstanding amount of green debt issued, and additional information on financed projects and the share of refinancing activities. Bonava also intends to report on relevant impact metrics on a best-effort basis. Sustainalytics views Bonava’s allocation and impact reporting as aligned with market practice.