Project Details
Project
Fidelidade Green Financing Framework Second-Party Opinion (2024)
Client
Fidelidade – Companhia de Seguros S.A.
Project Type
Green Bond/Loan
Industry Group
Insurance
Use of Proceeds
Green buildings; Natural resources/land use management;
Location
Portugal
Evaluation Date
May 2024
Evaluation Summary
Sustainalytics is of the opinion that Fidelidade Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Green Buildings, 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 investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 9 and 15.
PROJECT EVALUATION AND SELECTION
Fidelidade’s Operational Sustainability Committee, comprising senior members from different divisions, including the Sustainability team, will be responsible for the project evaluation and selection process. The committee will be chaired by the CEO and have the CIO as an active voting member. Fidelidade has adopted internal processes and policies to address environmental and social risks commonly associated with the financed projects. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Fidelidade’s Treasury team will be responsible for the overall allocation and management of the proceeds. It intends to allocate all proceeds within three years of each issuance. Pending full allocation, the proceeds may be held in cash or cash equivalents, or invested in liquid marketable instruments in line with the company’s treasury management policies. This is in line with market practice.
REPORTING
Fidelidade commits to publish an allocation and impact report on its website for all issuances on an annual basis until full allocation. Allocation reporting will include category-wide details regarding the allocated amount and the proportion of unallocated proceeds. In addition, Fidelidade intends to report on relevant quantitative impact and has provided indicative metrics within the Framework. Sustainalytics views Fidelidade’s allocation and impact reporting commitments as aligned with market practice.