Project Details
Project
Kutxabank Green, Social and Sustainability Bond Framework Second-Party Opinion (2025)
Client
Kutxabank Group
Project Type
Green Bond/Loan; Social Bond/Loan; Sustainability Bond/Loan;
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Clean transport; Access to essential services; Health; Education; Affordable housing; Employment generation and Socio-economic empowerment; Socio-economic advancement;
Location
Spain
Evaluation Date
Feb 2025
Evaluation Summary
Sustainalytics is of the opinion that the Kutxabank Green, Social and Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Clean Transportation, Access to Essential Services - Health, Access to Essential Services - Education, Affordable Housing, Employment Generation, and Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 7, 8, 9, 10 and 11.
PROJECT EVALUATION AND SELECTION
Kutxabank’s Sustainable Bond Committee will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The committee consists of representatives from the Sustainability, Global Risk Control, IT Systems, Treasury and Funding teams. Kutxabank will leverage the Group’s Sustainability Policy and internal ESG standards to identify, evaluate and manage environmental and social risks associated with the eligible assets. Sustainalytics considers the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Kutxabank’s Treasury Department will be responsible for the management of proceeds and will track their allocation through a sustainable bond register using a portfolio approach. Kutxabank intends to allocate proceeds within 24 months of each issuance. Pending allocation, unallocated proceeds will be temporarily held or invested in cash, deposits or money market instruments in accordance with the Group’s treasury liquidity guidelines and the Framework’s exclusionary criteria. This is in line with market practice.
REPORTING
Kutxabank will report on the allocation of proceeds and the corresponding impacts on its website on an annual basis until the maturity of the bonds. Allocation reporting will include the total amount of outstanding proceeds, the total amount of proceeds allocated to the eligible portfolio, an analysis of the portfolio by eligible category and year of origination, the balance of unallocated proceeds, if any, and the percentage of co-financing, if any. Sustainalytics views Kutxabank’s allocation and impact reporting as aligned with market practice.