Project Details
Project
EDC Sustainable Bond Framework Second Party Opinion (2022) (English)
Client
Export Development Canada
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Clean transport; Water/waste water management; Climate change adaptation; Green buildings; Affordable housing; Affordable basic infrastructure; Access to essential services; SME finance and microfinance; Socio-economic advancement;
Location
Canada
Evaluation Date
Feb 2022
Evaluation Summary
Sustainalytics is of the opinion that the EDC Sustainable Bond Framework is credible and impactful and aligns with the four core components of the Sustainability Bond Principles 2021, Green Bond Principles 2021, and Social Bond Principles 2021 administered by ICMA. Sustainalytics classifies the use of proceeds categories of the Framework as being green, transition, and social. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Use of Proceeds Principles. Sustainalytics specifically considers investments in eligible categories and related expenditures to be a viable option for the low-carbon transition and advance the UN Sustainable Development Goals, specifically SDG 3, 5, 6, 7, 10, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
EDC’s internal process in evaluating and selecting projects is to be managed by the Sustainable Bond Working Group. EDC has an environmental and social risk management process in place aligned with the credit risk management framework outlined in the Equator Principles, applicable to all transactions and exposures. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
EDC’s processes for management of proceeds are overseen by its Treasury and Loans Services department. EDC intends to allocate proceeds within 24 months after any issuance. Unallocated proceeds will be held in accordance with EDC’s liquidity policies. This is in line with market practice.
REPORTING
EDC intends to report on allocation and impact of proceeds on its website on an annual basis in its Integrated Annual Report until full allocation. Sustainalytics views the allocation and impact reporting as aligned with market practice.