Project Details
Project
mBank Green Bond Framework Second-Party Opinion (2022)
Client
mBank S.A.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Poland
Evaluation Date
Feb 2022
Evaluation Summary
Sustainalytics is of the opinion that the mBank S.A. Group Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Clean Transportation, Electricity Transmission, Distribution and Storage, and Waste Management – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to support Poland’s and the EU’s transition to a low carbon economy strategy and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11 and 12.
PROJECT EVALUATION / SELECTION
mBank S.A. Group’s (the “Group”) has established a Sustainable Development Committee which will be responsible for evaluating and selecting eligible assets in line with the eligibility criteria. The Group has implemented a risk assessment process in place which is applicable to all allocation decisions. Sustainalytics considers the risk management system to be adequate and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
mBank S.A. Group’s Sustainable Development Committee will track the allocation of proceeds through an internal information system. The Group intends to fully allocate the proceeds to eligible assets within two years of issuance. Pending allocation, proceeds will temporarily be invested in cash, cash equivalents or short-term liquid instruments in accordance with the Group’s treasury guidelines. This is in line with market practice.
REPORTING
mBank S.A. Group intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include information such as the total amount of proceeds allocated to eligible projects and assets, balance of unallocated proceeds and share of financing versus refinancing. In addition, the Group is committed to reporting on relevant impact metrics. Sustainalytics view the Group’s allocation and impact reporting commitments as aligned with market practice.