Project Details
Project
Manulife Sustainable Bond Framework Second-Party Opinion (2022)
Client
Manulife Financial Corporation
Project Type
Sustainability Bond/Loan
Industry Group
Insurance
Use of Proceeds
Renewable energy; Green buildings; Natural resources/land use management; Energy efficiency; Clean transport; Pollution prevention and control; Water/waste water management; Access to essential services; Affordable housing;
Location
Canada
Evaluation Date
Feb 2022
Evaluation Summary
Sustainalytics is of the opinion that the Manulife 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, Environmentally Sustainable Management of Living Natural Resources and Land Use, Energy Efficiency, Clean Transportation, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Access to Essential Services, Affordable Housing– are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories may lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 10, 11 and 15.
PROJECT EVALUATION / SELECTION
Manulife’s Sustainability Accounting team is responsible for maintaining an inventory of general account assets that are eligible under the Framework and structures the allocation of proceeds. Manulife’s Sustainable Bonds Council provides final approval on project selection. Manulife’s ESG guidelines are applicable to all allocation decisions made under the Framework. Sustainalytics considers the risk management system to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Manulife has established a Sustainable Bond Register to track net proceeds which will be managed by its Sustainability Accounting team. The Company intends to fully allocate proceeds within 18 months of issuance. Pending full allocation, net proceeds will be held in cash or liquid securities. This is in line with market practice.
REPORTING
Manulife has committed to allocation reporting via an annual report on its website. In addition, Manulife is committed to reporting on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.