Second-Party Opinion Download

Sustainalytics is of the opinion that the Laurentian Bank Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Green Buildings, Energy Efficiency, Low-Carbon Transportation, Affordable Housing, Access to Essential Services, Majority Women-Owned SME Financing and Leadership in Diversity and Inclusion – are aligned with those recognized by both the Green Bond Principles and Social Bond 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 3, 4, 5, 7, 10 and 11.

PROJECT EVALUATION/SELECTION

Laurentian Bank’s Sustainable Bond Working Group comprises senior representatives from Personal Banking, Commercial Banking, Capital Markets, Credit, Legal, Compliance, Risk Management, Accounting, Investor Relations and Corporate Treasury and the Office of the President. The Sustainable Bond Working Group will oversee the internal process for evaluating and approving the assets shortlisted by its individual business lines. The Bank has adopted internal processes to identify and manage environmental and social risks associated with the financed assets. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Laurentian Bank’s Sustainable Bond Working Group will oversee the allocation and tracking of proceeds. Laurentian Bank intends to reach full allocation within 36 months. Pending allocation, unallocated proceeds will be held in cash or liquid securities in line with Laurentian Bank’s liquidity management processes. This is in line with market practice.

REPORTING

Laurentian Bank intends to publish a Sustainable Bond Report on its website to report on the allocation and impact of proceeds on an annual basis until full allocation. Allocation reporting will include the net proceeds issued, the aggregate amounts of proceeds allocated to each category, the proportion of proceeds allocated to each category and the unallocated balance of net proceeds. In addition, Laurentian Bank has committed to reporting on relevant impact metrics. Sustainalytics views Laurentian Bank’s allocation and impact reporting as aligned with market practice.