Project Details
Project
ConCrédito Social Bond Framework Second-Party Opinion (2024)
Client
ConCrédito
Project Type
Social Bond/Loan
Industry Group
Financials
Use of Proceeds
Employment generation and Socio-economic empowerment
Location
Mexico
Evaluation Date
Jul 2024
Evaluation Summary
Sustainalytics is of the opinion that the ConCrédito Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Employment Generation and Socio-economic Empowerment, is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations in Mexico. Sustainalytics considers that investments in the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 5, 8 and 10.
PROJECT EVALUATION AND SELECTION
ConCrédito’s Credit Department will be responsible for overseeing the identification and selection of eligible loans. ConCrédito has adopted internal processes to manage risks related to predatory lending and community relations. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
ConCrédito intends to allocate proceeds fully at the time of each issuance. The Executive Committee will oversee the allocation process and track the proceeds in collaboration with the Credit Department. This is in line with market practice.
REPORTING
ConCrédito intends to publish a Social Bond Report on its website on an annual basis or earlier in case of material developments. The report will include details on the allocation of proceeds. In addition, ConCrédito intends to report on relevant quantitative impact metrics where feasible and has provided indicative metrics in the Framework. Sustainalytics views ConCrédito’s allocation and impact reporting as aligned with market practice.