Second-Party Opinion Download

Sustainalytics is of the opinion that the Forbright Bank Green Financing Framework is credible and impactful and, with respect to the bonds, notes and preferred stocks, is aligned with the four core components of the Green 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; Green Buildings; Sustainable Water, Waste and Agriculture; and Sustainable Transportation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 9, 11, 12 and 15. 

PROJECT EVALUATION AND SELECTION

Forbright Bank’s ESG Working Group and Officers Loan Committee will evaluate, select and monitor eligible assets against the eligibility criteria and will be overseen by the ESG Strategy Committee. The ESG Working Group will also oversee the environmental and social risk assessment process, which is applicable to all allocation decisions. Sustainalytics considers the risk management system to be adequate and the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Forbright Bank’s Sustainable Asset Tracking group will track and monitor the allocation of proceeds to eligible projects. The Bank will allocate proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily held in line with Forbright Bank’s internal liquidity policy and may be temporarily invested in cash or cash equivalents. 

REPORTING

Forbright Bank intends to report on the allocation of proceeds and corresponding impact on its website on an annual basis until full allocation. Allocation reporting will include a description of the projects financed, the amount of proceeds allocated to each eligible category and the balance of unallocated proceeds. Forbright Bank is also committed to reporting on relevant impact metrics, achieved or expected, where feasible. Sustainalytics views Forbright Bank’s allocation and impact reporting as aligned with market practice. 

Alignment of Deposits with Market Expectations  

The Forbright Bank Green Financing Framework includes deposits as an eligible financial product. Sustainalytics is of the opinion that the principles of impact and transparency that underlie the sustainable investment industry, as well as many of its norms and standards, are applicable to deposits, and that Forbright Bank’s internal processes and the use of funds aligns with those principles.