Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation and Affordable Housing – are aligned with those recognized by 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 7 and 11.

PROJECT EVALUATION AND SELECTION

LBG’s Sustainable Bond Committee will evaluate, select and monitor eligible projects. The committee comprises representatives from the Group’s Corporate Treasury, Sustainable Business, Environmental Sustainability, Risk, Finance Sustainability Reporting, Legal, Conduct Compliance and Operational Risk, and Portfolio Analytics departments and other divisions. LBG has internal processes to address environmental and social risks associated with the eligible assets. Sustainalytics considers these processes to be in line with market practice.

MANAGEMENT OF PROCEEDS

LBG’s Sustainable Bond Committee will be responsible for the management and allocation of proceeds to eligible projects through an internal tracking system. The Bank will allocate proceeds at the time of issuance. Pending allocation, proceeds will be temporarily held in cash or short-term liquid investments. Sustainalytics considers this to be in line with market practice.

REPORTING

LBG intends to report on allocation of proceeds on its website on an annual basis. This report will include the size of the green and social portfolios by number of loans and balances at a category level, the amount raised through bond issuance and allocated to eligible assets and the balance of unallocated proceeds. In addition, LBG is committed to reporting on relevant impact metrics. Sustainalytics views LBG’s allocation and impact reporting commitments as aligned with market practice.