CaixaBank Sustainable Development Goals Framework
Use of Proceeds
Sustainalytics is of the opinion that the CaixaBank Sustainable Development Goals (SDG) 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 recognized by both the Green Bond Principles and Social Bond Principles as impactful. Sustainalytics considers the financing of projects and companies dedicated to providing (i) access to essential services, (ii) affordable basic infrastructure, (iii) employment generation, (iv) sustainable water and wastewater management, (v) renewable energy, (vi) energy efficiency, (vii) green buildings, (viii) clean transportation, (ix) pollution prevention and control and (x) terrestrial and aquatic biodiversity conservation to have positive environmental or social impacts and to advance the UN Sustainable Development Goals.
CaixaBank’s internal process of evaluating and selecting projects is aligned with market practice. The company has a dedicated SDGs Working Group to preselect projects. CaixaBank’s SDGs Working Group is co-headed by representatives from the Treasury and Corporate Responsibility departments and further comprised of representatives from the Risk and Business departments. Final approval of shortlisted projects is conducted by the Environmental Risk Management Committee and the Corporate Responsibility and Reputation Committee.
MANAGEMENT OF PROCEEDS
CaixaBank’s processes for management of proceeds is aligned with market practices. CaixaBank has in place an internal register to track the use of proceeds. Unallocated proceeds will be held according to CaixaBank’s Treasury’s general liquidity guidelines for short term investments.
CaixaBank intends to report on the allocation of proceeds on its website on an annual basis. In addition, CaixaBank is committed to reporting annually on impact indicators until full allocation, such as the location and type of green building certifications, CO2 emissions avoided, number of jobs created and number of solar farms, wind farms or hydro power plants built amongst others. In Sustainalytics’ view, reporting on these metrics is in line with market practice.