Second-Party Opinion Download

Sustainalytics is of the opinion that the Danske Bank Group 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 use of proceeds categories (Clean Transportation, Renewable Energy, Transmission and Energy Storage, Environmentally Sustainable Management of Living Natural Resources and Land Use, Green and Energy Efficient Buildings, Pollution Prevention and Control, Sustainable Water and Wastewater Management, and Climate Change Adaptation) are recognized by the Green Bond Principles 2018 as impactful. Sustainalytics believes that projects in these categories will contribute to reducing GHG emissions, limiting pollution and enhancing resilience to climate change in Nordic countries.

PROJECT EVALUATION/SELECTION

Danske Bank has established a Green Bond Committee (GBC), which approves Green Loans. Moreover, The GBC, chaired by the Danske Bank Group Head of Treasury, consists of representatives from the bank’s Sustainable Finance, Societal Impact and Sustainability and Risk Management functions and meets bi-monthly. Sustainalytics assesses this process as being in line with market practices.

MANAGEMENT OF PROCEEDS

Danske Bank uses Green Registries, on a portfolio basis, to keep track of the Green Loans per issuing entity and net proceeds from Green Bond issuances. The use of proceeds from the Green Registries will only support the financing of Green Loans or to repay Green Bonds. Moreover, the unallocated net proceeds (temporary investments) will be invested in Danske Bank’s treasury liquidity portfolio in cash or other short-term and liquid instruments until full allocation. Sustainalytics assesses this approach as being in line with market practices.

REPORTING

Danske Bank and its subsidiaries commit to annual reporting per issuing entity on its website and in an aggregated annual Green Bond report which will contain information such as a summary of general Green Bond developments, the outstanding amount of Green Bonds, total allocation of Green Bond net proceeds to each Green Loan category, and the balance of Green Loans in the Green Registries, including temporary investments. Regarding impact reporting, Danske Bank and its subsidiaries will annually release its performance reporting, which will include indicative key performance indicators such as: number of low-carbon vehicles, GHG savings (tonnes per year), renewable energy generation (MWh per year), installed renewable energy capacity (MW), forest areas (hectares), and obtained certification schemes. In Sustainalytics’ view, reporting on these metrics is in line with market practices.