Project Details
Project
Commerzbank Green Bond Second-Party Opinion
Client
Commerzbank
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Germany
Evaluation Date
Sep 2018
Evaluation Summary
Sustainalytics is of the opinion that the Commerzbank Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the financing of offshore and onshore wind energy and solar energy projects will contribute to GHG reduction targets globally, particularly in Germany, and advance several UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
Commerzbank’s internal process in evaluating and selecting projects is aligned with market standards. Commerzbank’s Green Bond Committee, which is responsible for final evaluation of eligible projects, includes one representative from the departments of Commerzbank Group Treasury, Corporate Responsibility, Investor Relations and Debt Capital Markets – Bonds, as well as a representative of the business unit for the relevant assets.
MANAGEMENT OF PROCEEDS
Commerzbank’s processes for management of proceeds is aligned with market practice, including processes to record and monitor allocation of proceeds. Unallocated proceeds will be invested into “high-quality Green Bonds of European issuers”.
REPORTING
Commerzbank intends to report on the allocation of proceeds, including allocated amount, amount allocated per technology, geographic region, year of first drawdown and maturity year of the refinanced loan on an annual basis on its website. In addition, Commerzbank is committed to reporting on renewable energy capacity, energy output and CO2 emissions avoided from the financed projects. In Sustainalytics’ view, reporting on these metrics is in line with market practice.