Project Details
Project
Mercado Libre Sustainability Bond Framework Second-Party Opinion
Client
Mercado Libre Inc.
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Argentina
Evaluation Date
Nov 2020
Evaluation Summary
Sustainalytics is of the opinion that the Mercado Libre Sustainability Bond Framework (the “Framework”) is credible and impactful and aligns with the Green Bond Principles 2018 (GBP), Social Bond Principles 2020 (SBP) and Sustainability Bond Guidelines 2018 (SBG). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds — Clean Transportation, Access to Finance, Land Conservation and Preservation, Renewable Energy, Eco-efficient sustainable materials and circular economy processes, Green Buildings, Energy Efficiency, and Socioeconomic Advancement and Empowerment — are aligned with those recognized by both the GBP and SBP. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG (list goal(s) numbers).
PROJECT EVALUATION/SELECTION
Mercado Libre Inc’s (the “Company” or “Mercado Libre”) intends on setting up a Sustainability Finance Committee to evaluate and select projects that are aligned with criteria set forth in the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Mercado Libre intends on entrusting the Sustainability Finance Committee to manage proceeds raised from issuances under the Framework. Proceeds are intended to be allocated within the first 36 months from issue towards new or existing projects undertaken in the 2 years preceding date of issue. Pending allocations, funds are intended to be managed in alignment with a defined internal policy. Sustainalytics considers this to be in line with market practice.
REPORTING
Mercado Libre intends to report allocation proceeds on its website on an annual basis until full allocation. Report may include details about allocations made from the Framework and a brief description of key projects. In addition, Mercado Libre is committed to reporting on relevant impact metrics. Sustainalytics views Mercado Libre’s allocation and impact reporting as aligned with market practice.