Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy; Energy Efficiency; Sustainable Water and Wastewater Management; Pollution Prevention and Control; Clean Transportation; Green Buildings; Living Natural Resources and Land Use Projects; Access to Essential Services: Healthcare; Access to Essential Services: Education and Vocational Training; Affordable Housing; Socio-economic Advancement and Empowerment: Women Empowerment; and Employment Generation: Sole Traders, Partnerships and SMEs – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14 and 15.  

PROJECT EVALUATION AND SELECTION

NatWest Group’s Green, Social and Sustainability Financing Working Group (the “Working Group”) will evaluate, select, monitor and approve Eligible Assets against the criteria. NatWest Group’s environmental, social and ethical risk assessment process is applicable to all commercial lending decisions. Additionally, NatWest Group complies with applicable regulations to mitigate social risks related to retail lending. Sustainalytics considers these risk management systems to be adequate and the project evaluation and selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

NatWest Group’s Treasury will be responsible for the management and allocation of proceeds to eligible assets and will track the proceeds through an eligibility criteria register to determine an eligible portfolio. NatWest Group intends to allocate a specific pool of assets to each issuance and has communicated to Sustainalytics that it intends to reach full allocation within 12 months of issuance. Pending allocation, unallocated proceeds will be temporarily held or invested in cash or short-term liquid instruments. This is in line with market practice. 

REPORTING

NatWest Group intends to prepare a combined allocation and impact report and make it available, on its website at least on an annual basis. Allocation reporting will include the total amount of proceeds allocated to each eligible green asset category and social asset category, the number of eligible assets included in the eligible portfolio, the balance of unallocated proceeds and the amount and percentage of new loans added to the eligible portfolio post initial allocation. Sustainalytics views NatWest Group’s allocation and impact reporting commitments as aligned with market practice.