Project Details
Project
Bush Foundation Social Bond Framework Second-Party Opinion
Client
Bush Foundation
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Oct 2020
Evaluation Summary
Sustainalytics is of the opinion that the Bush Foundation Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, philanthropic grants to asset-building projects, is aligned with those recognized by the Social Bond Principles. Specifically, grants in the areas of home ownership, education, entrepreneurship and economic development are anticipated to lead to positive social impact, including socio-economic advancement and empowerment for target populations. Sustainalytics considers that the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG Goals 8 and 10.
PROJECT EVALUATION/SELECTION
The Bush Foundation’s leadership and program teams will be responsible for evaluating and allocating grant funds. Bush Foundation will draw on its knowledge of grant development, program management, charitable giving, as well as current systems and policies, to develop its new program. Proceeds will be allocated within 24-36 months, starting in 2021. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds of the social bonds issued under the Bush Foundation’s Framework will be deposited into low-risk short term investment accounts dedicated solely to holding and disbursing funds for the grants as part of the new program. These grant payments will be recorded in Bush Foundation’s grants management system. Sustainalytics considers this process to be in line with market practice.
REPORTING
The Bush Foundation intends to provide reporting on a regular basis on its website, in line with its existing approach to reporting. The reporting will include a summary of grantee organizations, grant amounts and expected impact. Sustainalytics views the allocation and impact reporting as aligned with market practice.