Second-Party Opinion Download

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

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Climate Change Adaptation, Access to Essential Services, Affordable Basic Infrastructure, Food Security and Sustainable Food Systems and Employment Generation – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental and social impacts, and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15.

PROJECT EVALUATION / SELECTION

Finnfund’s process for evaluating and selecting projects is overseen by its Sustainability Bond Committee. Finnfund has an environmental and social risk management process in place which is applicable to all allocation decisions under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Finnfund’s Treasury department will be responsible for managing the allocation of net proceeds using a Sustainability Bond Framework Register. Finnfund intends to allocate all proceeds to eligible projects within 24 months of issuance. Pending allocation, proceeds will be temporarily placed in Finnfund’s liquidity reserve. This is in line with market practice.

REPORTING

Finnfund intends to report on the allocation of proceeds through a publicly available Sustainability Bond Report on an annual basis until full allocation and in the event of any material developments. Allocation reporting will include information such as the amounts allocated for each project category and the share of new financing and refinancing. In addition, Finnfund is committed to reporting on relevant impact metrics. Sustainalytics views Finnfund’s allocation and impact reporting commitments as aligned with market practice.