Project Details
Project
M&T Bank Sustainable Financing Framework Second-Party Opinion (2024)
Client
M&T Bank Corporation
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Affordable housing;
Location
U.S.
Evaluation Date
Nov 2024
Evaluation Summary
Sustainalytics is of the opinion that the M&T Bank Sustainable Financing 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 – Renewable Energy, Green Buildings, 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
M&T Bank’s Sustainable Finance Review Group is responsible for evaluating and selecting assets as per the eligibility criteria defined in the Framework. M&T Bank’s Risk Committee will oversee its internal processes to identify and mitigate environmental and social risks commonly associated with the eligible assets. The Bank’s risk assessment processes are applicable to all financing activities under the Framework. Sustainalytics considers the eligible asset selection process in line with market practice.
MANAGEMENT OF PROCEEDS
M&T Bank’s Office of Sustainability and Finance Department will be responsible for the management and allocation of the net proceeds and will track proceeds using an internal registry. M&T Bank will allocate all proceeds within two years of issuance. Pending allocation, unallocated proceeds will be managed in accordance with M&T Bank’s liquidity practices. This is in line with market practice.
REPORTING
M&T Bank will report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting may include allocated amounts by category and unallocated amounts. In addition, M&T Bank intends to report on relevant impact metrics, such as annual renewable energy generation and number and dollar amount of mortgages provided. Sustainalytics views M&T Bank’s allocation and impact reporting as aligned with market practice.