iA Financial Group Sustainability Bond Framework Second Party Opinion (English) (2022)
iA Financial Group
Use of Proceeds
Clean transport; Energy efficiency; Renewable energy; Green buildings; Water/waste water management; Pollution prevention and control; Natural resources/land use management; Affordable housing; Affordable basic infrastructure; Socio-economic advancement;
Sustainalytics is of the opinion that the iA Financial Group 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 – Clean Energy, Energy Efficiency, Clean Transportation, Green Buildings, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Access to Essential Services and Infrastructure, Affordable Housing and Basic Infrastructure, Majority Women-owned Businesses, and Indigenous Communities and Businesses – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 5, 6, 7, 10, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
iA Financial Group’s Sustainability Bond Committee will oversee the internal process for evaluating and selecting projects. The Group will undertake an ESG analysis which is applicable to all allocation decisions made under the Framework, in accordance with the Group’s Responsible Investment Policy. Sustainalytics considers these risk management systems to be adequate and the process for project evaluation and selection in line with market practice.
MANAGEMENT OF PROCEEDS
iA Financial Group’s Sustainability Bond Committee will oversee the management of proceeds. The net proceeds of the sustainability bonds will be placed in iA Financial Group’s general funding account and earmarked for allocation within the Sustainability Bond Register. Pending allocation, unallocated proceeds will be held in cash, cash equivalent or other liquid assets including government bonds, money market instruments or used to repay existing indebtedness not related to fossil fuel investments. iA Financial Group intends to reach full allocation within 36 months of issuance. This is in line with market practice.
iA Financial Group intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount allocated per eligible category, balance of unallocated proceeds and the share of financing versus refinancing. In addition, iA Financial Group is committed to reporting on relevant impact metrics. Sustainalytics views iA Financial Group’s allocation and impact reporting as aligned with market practice.