Second-Party Opinion Download

Sustainalytics is of the opinion that the Caja Rural de Navarra Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds - Sustainable Agriculture, Renewable Energy, Energy Efficiency, Sustainable Forest Management, Waste Management, Affordable Housing, Social Inclusion, Education and Economic Inclusion - are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 4, 7, 8, 9, 10, 11, 12 and 15.

PROJECT EVALUATION AND SELECTION

Caja Rural de Navarra’s Sustainability Committee will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The Sustainability Committee will identify and mitigate environmental and social risks associated with the eligible projects under the Framework. Sustainalytics considers the project selection process and the risk management systems to be in line with market practice.

MANAGEMENT OF PROCEEDS

Caja Rural de Navarra’s Sustainability Committee will be responsible for the management of proceeds through a portfolio approach and will track their allocation using an internal system. The Bank intends to allocate proceeds within 24 months of each issuance. Pending full allocation, unallocated proceeds will be managed according to the Bank’s Treasury department processes and will be invested in OECD sovereign and sub-sovereign bonds. The Bank has confirmed that it will exclude temporary allocations towards carbon-intensive activities. This is in line with market practice.

REPORTING

Caja Rural de Navarra will report on the allocation of proceeds and the corresponding impact in a corporate social responsibility report, which will be published on its website on an annual basis until full allocation. Allocation reporting will include the total amount of outstanding loans by category, the number of outstanding loans by category, and the number of borrowers, including individuals and SMEs. Sustainalytics views Caja Rural de Navarra’s allocation and impact reporting as aligned with market practice.