Project Details
Project
Council of Europe Development Bank Social Inclusion Bond Framework Second-Party Opinion (2022)
Client
Council of Europe Development Bank
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
France
Evaluation Date
Mar 2022
Evaluation Summary
Sustainalytics is of the opinion that the Council of Europe Development Bank (“CEB”) Social Inclusion Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Social Housing, Education and Vocational Training, Health and Social Care, and MSME Financing for the Creation and Preservation of Viable Jobs – are aligned with those recognized by the Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive social impacts and help advance the UN Sustainable Development Goals, specifically SDG 3, 4, 8 and 11.
PROJECT EVALUATION / SELECTION
CEB’s Project Monitoring Unit oversees the internal process for evaluating and selecting projects. Projects are screened against the Paris Agreement objectives and the Framework’s criteria. Allocation decisions follow CEB’s environmental and social risk management assessment. Sustainalytics considers this process to be strong and to be aligned with market best practice.
MANAGEMENT OF PROCEEDS
CEB’s processes for management of proceeds are handled by its Finance department using a portfolio approach. Unallocated proceeds will be managed in line with the standard processes of CEB’s treasury until full allocation. Proceeds will be fully allocated to a portfolio of Eligible Social Loans within 24 months. Sustainalytics considers the management of proceeds as aligned with market practice.
REPORTING
CEB intends to report on the allocation of proceeds through the publication of a Social Inclusion Bond Report on its website on an annual basis until full allocation. An independent auditor will review CEB’s allocation of proceeds, which is considered market best practice. In addition, CEB is committed to reporting on relevant impact metrics. Sustainalytics views CEB’s allocation and impact reporting as aligned with market practice.