Project Details
Project
CIBC Sustainability Issuance Framework Second-Party Opinion (2024)
Client
CIBC
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Climate change adaptation; Natural resources/land use management; Conservation; Clean transport; Water/waste water management; Green buildings; Eco-efficient products; Access to essential services; Affordable basic infrastructure; Socio-economic advancement; Employment generation and Socio-economic empowerment; Food security;
Location
Canada
Evaluation Date
Mar 2024
Evaluation Summary
Sustainalytics is of the opinion that the CIBC Sustainability Issuance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Clean Energy, Clean Fuels, Energy Efficiency, Pollution Prevention and Control, Climate Resilience and Adaptation, Environmentally Sustainable Management of Living Natural Resources and Land Use, Terrestrial and Aquatic Biodiversity Conservation, Clean Transportation, Sustainable Water and Waste Water Management, Green Buildings, Circularity, Essential Services, Affordable Housing and Basic Infrastructure, Socioeconomic Advancement and Empowerment, Employment Generation, and Food Security and Sustainable Food Systems – are aligned with those recognized by both the Green Bond Principles and Social Bond 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 SDG 2, 3, 4, 5, 6, 7, 8,9, 10, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
CIBC's Sustainability Issuance Council, comprised of members from the Treasury, Finance, Environmental Risk Management, Enterprise ESG, Commercial Banking and Capital Markets teams, is responsible for the selection and approval of all Eligible Assets. CIBC's environmental and social risk management systems, including its Corporate Environmental Policy, are applicable for all allocation decisions in the Framework. Sustainalytics considers the risk management systems to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
CIBC will track allocations internally and intends to fully allocate funds within 18 months of each issuance following a portfolio approach. Pending allocation, the proceeds will be deposited in CIBC's General Fund accounts and managed per existing liquidity policies. This is in line with market practice.
REPORTING
CIBC intends to report on the allocation of proceeds on its website and on an annual basis until the maturity of the respective issuance. In addition, CIBC is committed to reporting on relevant impact metrics. Sustainalytics views CIBC's allocation and impact reporting as aligned with market practice.