Project Details
Project
Landsbankinn Sustainable Finance Framework Second-Party Opinion (2024)
Client
Landsbankinn
Project Type
Sustainability Bond/Loan; EU Taxonomy Assessment;
Industry Group
Banks
Use of Proceeds
Renewable energy; Clean transport; Green buildings; Eco-efficient products; Natural resources/land use management; Water/waste water management; Pollution prevention and control; Access to essential services; Affordable housing; Employment generation and Socio-economic empowerment;
Location
Iceland
Evaluation Date
Jan 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 6, 7, 8, 9, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
Landsbankinn’s Sustainable Finance Committee is responsible for overseeing the process of project evaluation and selection in line with the Framework’s eligibility criteria. Landsbankinn has internal procedures in place to identify and manage potential environmental and social risks associated with eligible projects, which apply to all allocation decisions made under the Framework. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Landsbankinn’s Sustainability Committee will be responsible for the management of proceeds on a portfolio basis and will track the allocation of proceeds using an internal tracking mechanism. Landsbankinn intends to allocate all proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily invested according to Landsbankinn’s liquidity investment guidelines. This is in line with market practice.
REPORTING
Landsbankinn commits to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include amounts allocated to eligible projects in each eligible category, the balance of unallocated net proceeds and share of financing versus refinancing. In addition, Landsbankinn intends to report on relevant impact metrics. Sustainalytics views Landsbankinn’s allocation and impact reporting as aligned with market practice.