Second-Party Opinion Download

Sustainalytics is of the opinion that the Istanbul Metropolitan Municipality Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023, and Social Loan Principles 2023. This assessment is based on the following:  

USE OF PROCEEDS

The eligible categories for the use of proceeds – Clean Transportation, Renewable Energy, Climate Change Adaptation, Pollution Prevention & Control, Affordable Basic Infrastructure, Access to Essential Services, Food Security and Sustainable Food Systems, Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Sustainability Bond Guidelines, Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan 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 2, 3, 7, 9, 10, 11, 12 and 13.

PROJECT EVALUATION AND SELECTION

Istanbul Metropolitan Municipality’s Sustainable Working Committee is responsible for reviewing and overseeing the project evaluation and selection process in accordance with the Framework’s eligibility criteria. Additionally, Istanbul Metropolitan Municipality has processes in place to identify and manage environmental and social risks associated with the eligible projects in line with regional, national and international laws, standards and regulations. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Istanbul Metropolitan Municipality will oversee the allocation of the proceeds using an internal tracking mechanism. Istanbul Metropolitan Municipality intends to allocate all proceeds to eligible projects within 24 months of issuance. Pending full allocation, proceeds will be managed as per the Istanbul Metropolitan Municipality’s general cash management policy. This is in line with market practice. 

REPORTING

Istanbul Metropolitan Municipality commits to report on allocation of proceeds on its website on an annual basis from the issuance of the first sustainable finance instrument until full allocation. The allocation report will include the amount of proceeds to be allocated to the eligible projects, the amount of unallocated proceeds, the share of financing versus refinancing and the proceeds allocated as per geographical distribution. Istanbul Metropolitan Municipality intends to report on relevant impact metrics where feasible. Sustainalytics views Istanbul Metropolitan Municipality’s allocation and impact reporting as aligned with market practice.