Project Details
Project
Kuveyt Türk Sustainable Finance Framework Second-Party Opinion (2021)
Client
Kuveyt Türk Katilim Bankasi A.S.
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Pollution prevention and control; Renewable energy; Energy efficiency; Green buildings; Clean transport; Natural resources/land use management; Affordable housing; SME finance and microfinance; Access to essential services; Education; Health;
Location
Türkiye
Evaluation Date
Aug 2021
Evaluation Summary
Sustainalytics is of the opinion that the Kuveyt Türk Katılım Bankası A.Ş. 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 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Pollution Prevention and Control, Energy Efficiency, Green Buildings, Clean Transportation, Environmentally Sustainable Management of Living Natural Resources and Land Use, SME financing / employment generation, Affordable Housing, Access to Essential Services: Education & Healthcare – are aligned with those recognized by both the 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 and/or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 7, 8, 11, 12, and 15.
PROJECT EVALUATION / SELECTION
Kuveyt Türk’s Sustainable Finance Working Group comprised of members from various departments are responsible for selecting and approving eligible projects. Kuveyt Türk’s due diligence processes to manage and mitigate environmental and social risks are applicable for all allocations under the Framework. Sustainalytics considers the risk management processes to be adequate and the project selection to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Sustainable Finance Working Group is responsible for tracking allocations to eligible projects. Kuveyt Türk has defined a lookback period of three years for refinancing and intends to fully allocate within three years of each issuance. Pending allocation, the proceeds may be held in line with internal liquidity policies. This is in line with market practice.
REPORTING
Kuveyt Türk intends to report on the allocation of proceeds on its website annually until full allocation. In addition, the Bank is committed to reporting on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.