Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Green Buildings, Clean Transportation, Energy Efficiency, Pollution Prevention and Control, and Environmentally Sustainable Management of Living Natural Resources and Land Use – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investment in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11 and 12.  

PROJECT EVALUATION AND SELECTION

Ethias’ Sustainable and Responsible Investment Management Meeting is responsible for evaluating, selecting and monitoring the eligible assets against the eligibility criteria in the Framework. To mitigate ESG risks associated with its closed-end investments, Ethias has in place due diligence procedures aligned with UN Principles for Responsible Investment while it is developing an environmental and social risk management system for its direct, real estate and alternative investments.  Sustainalytics considers Ethias’ project evaluation and selection process to be in line with market practice and encourages Ethias to establish a comprehensive environmental and social risk management system that covers all investment activities. 

MANAGEMENT OF PROCEEDS

Ethias’ Asset Management Department under the Sustainable and Responsible Investment Management Meeting will manage the allocation of proceeds on a portfolio basis and will track allocations to eligible assets using a software. Ethias intends to allocate all proceeds to eligible projects within two years of issuance. Pending full allocation, unallocated proceeds will be invested, managed or held in cash or government treasury securities, and will be subject to its exclusion policy. This is aligned with market practice.  

REPORTING

Ethias commits to reporting on the allocation of proceeds and corresponding environmental impact, which will be published on its website annually. Allocation reporting will include the total amount of proceeds allocated to eligible projects, the total number of eligible projects, the balance of unallocated proceeds and the amount or share of financing versus refinancing. Sustainalytics views Ethias’ allocation and impact reporting as aligned with market practice.