Second-Party Opinion Download

Project Details

Project

Industrial Bank Co., Ltd. Green Bond Framework Second-Party Opinion

Issuer

Industrial Bank Co., Ltd.

Project Type

Green Bond

Location

China

Evaluation Date

Oct 2020

Evaluation Summary

Sustainalytics is of the opinion that the Green Bond Framework for Industrial Bank Co., Ltd. is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Low Carbon and Low Emission Transportation, (iv) Sustainable Water and Wastewater Management, and (v) Sustainable Marine Economy, Marine Environmental Protection and Coastal Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 11 and 14.

PROJECT EVALUATION/SELECTION

IB’s internal process in evaluating and selecting projects is managed by the Green Bond Working Group (the “Working Group”), which will review and approve eligible assets. The Working Group shall review the asset list on a quarterly basis and determine if any changes are necessary. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

IB’s processes for management of proceeds is handled by the Treasury team of the issuing branch and the headquarters. The Bank intends to allocate the proceeds within one year after issuance. IB will establish a Green Bond Ledger to record the source and allocation of proceeds and ensure they are used to finance eligible assets. Unallocated proceeds will be held in accordance with IB’s prudent liquidity management policy. This is in line with market practice.

REPORTING

IB intends to report allocation proceeds on its website on an annual basis until full allocation. Allocation reporting will include aggregate amount and percentage allocated to the use of proceeds categories, the remaining balance of unallocated proceeds and types of temporary investment, and description of certain assets. In addition, IB is committed to reporting on relevant impact metrics. Sustainalytics views IB’s allocation and impact reporting as aligned with market practice.

https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/green-bond-framework-for-industrial-bank-co.-ltd.-second-party-opinion.pdf?sfvrsn=5c37c273_3