Project Details
Project
Commonwealth Bank of Australia Green, Social and Sustainability Funding Framework Second-Party Opinion (2024)
Client
Commonwealth Bank of Australia
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Clean transport; Water/waste water management; Pollution prevention and control; Natural resources/land use management; Climate change adaptation; Affordable housing; Health; Education; Affordable basic infrastructure; Employment generation and Socio-economic empowerment;
Location
Australia
Evaluation Date
Feb 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by 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 SDGs 1, 2, 3, 4, 6, 7, 9, 11, 12 and 13.
PROJECT EVALUATION AND SELECTION
CBA’s Green, Social and Sustainability Funding Steering Committee will review and approve the potential eligible assets under the Framework, identified by each business unit at CBA. The Commonwealth Bank of Australia Group’s Environmental and Social Policy and its Risk Management Framework are applicable to all allocation decisions made under the Framework. Sustainalytics considers CBA’s risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
CBA’s Post Deal Management Team in its Treasury Department will be responsible for the management and allocation of proceeds to eligible projects, with oversight from the Green, Social and Sustainability Funding Steering Committee. The Bank will use its internal tracking system to track and report the allocation of proceeds using a register of eligible assets and intends to allocate the proceeds within 24 months of issuance. Pending allocation, proceeds may be temporarily held in cash, cash equivalents or other liquid marketable instruments with CBA’s treasury and in accordance with its liquidity policies. This is in line with market practice.
REPORTING
CBA commits to report on the allocation of proceeds in its Green, Social and Sustainability Impact Report on its website on an annual basis until full allocation. In addition, CBA is committed to reporting on the estimated environmental and social impacts of the use of proceeds using relevant impact metrics. Sustainalytics views CBA’s allocation and impact reporting as aligned with market practice.
https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/commonwealth-bank-of-australia-green-social-and-sustainability-funding-framework-second-party-opinion-(2024).pdf?sfvrsn=f07ddc3f_1