Second-Party Opinion Download

Sustainalytics is of the opinion that the Equitable Bank Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Social and Affordable Housing and Access to Essential Services – are aligned with those recognized by the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impact and advance the UN Sustainable Development Goals, specifically SDGs 1, 7, 8, 10 and 11. 

PROJECT EVALUATION AND SELECTION

Equitable Bank’s Sustainable Bond Committee will evaluate, select and monitor eligible projects and assets per the eligibility criteria defined in the Framework. The committee will be chaired by the Vice President and Treasurer and include senior representatives from the bank’s Treasury, Capital Markets, ESG and Legal departments. The bank has adopted internal processes to address environmental and social risks associated with the assets financed under the Equitable Bank Sustainable Bond Framework. This is in line with market practice.  

MANAGEMENT OF PROCEEDS

Equitable Bank’s Treasury Department will be responsible for allocating and tracking proceeds to eligible projects. Equitable Bank intends to allocate all proceeds within 24 months of each issuance. Pending full allocation, unallocated proceeds will be temporarily held or invested in cash, cash equivalents or other liquid marketable investments in line with Equitable Bank’s normal liquidity policies or be used to pay outstanding debt not associated with carbon-intensive activities. This is in line with market practice. 

REPORTING

Equitable Bank intends to report on the allocation of proceeds and the corresponding impact on its website on an annual basis until full allocation. Allocation reporting will include the category-wide allocation of proceeds, the share of financed versus refinanced projects or assets, and the balance of unallocated proceeds. In addition, the bank is committed to reporting on relevant impact metrics. Sustainalytics views Equitable Bank’s allocation and impact reporting as aligned with market practice.