Project Details
Project
Crelan Green Bond Framework Second-Party Opinion (2023)
Client
Crelan Group
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Clean transport;
Location
Belgium
Evaluation Date
Mar 2023
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings and Clean Transportation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 9 and 11.
PROJECT EVALUATION AND SELECTION
Crelan Group’s Asset Liabilities Management Risk Modelling Team will be responsible for evaluating and selecting eligible assets in line with the eligibility criteria under the Framework. Crelan Group’s Green Bond Committee will review and approve the eligible assets. The Green Bond Committee will also monitor potential environmental and social risks associated with the eligible assets and ensure that such risks are mitigated. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Crelan Group’s Balance Sheet Management Team and Treasury Department will be responsible for the management of proceeds on a portfolio basis. Crelan Group intends to fully allocate the proceeds within 24 months of issuance. Pending full allocation, the proceeds will be invested in cash or cash equivalents in line with Crelan Group’s general investment policy or used to repay existing debts. Crelan Group has confirmed that unallocated proceeds will not be invested in GHG-intensive or other controversial activities. This is in line with market practice.
REPORTING
Crelan Group intends to report on the allocation of proceeds and the corresponding impact on its website on an annual basis until the maturity of the bonds. Allocation reporting will include, where possible, the amount of net proceeds allocated to eligible loans by category, the amount of unallocated proceeds, the share of financing versus refinancing and the share of eligible loans that are aligned with the EU Taxonomy. Sustainalytics views Crelan Group’s allocation and impact reporting as aligned with market practice.