Project Details
Project
NIBC Sustainable Financing Framework Second-Party Opinion
Client
NIBC
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Netherlands
Evaluation Date
Mar 2020
Evaluation Summary
Sustainalytics is of the opinion that the NIBC Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers the eligible categories, namely (i) Access to Essential Services, (ii) Affordable Housing, (iii) Employment Generation, (iv) Cultural Heritage, (v) Socioeconomic Advancement and Empowerment, (vi) Renewable Energy, (vii) Energy Efficiency, (viii) Green Buildings, (ix) Clean Transportation, (x) Pollution Prevention and Control, and (xi) Sustainable Agriculture, to have positive environmental or social impacts and to advance UN Sustainable Development Goals 2, 4, 5, 7, 8 and 11.
PROJECT EVALUATION/SELECTION
NIBC’s internal process for evaluating and selecting projects is overseen by NIBC’s Senior Sustainability Officer. Projects are evaluated and selected based on compliance with the eligibility criteria outlined in the Framework. This process is aligned with market practice.
MANAGEMENT OF PROCEEDS
NIBC’s processes for management of proceeds is handled by the Asset and Liability Committee. Sustainability loan proceeds will be credited to a dedicated account and tracked by the borrower. Where a sustainability loan takes the form of one or more tranches of a loan facility, each tranche must be clearly designated, with the proceeds of each tranche credited to a separate account or tracked by the borrower in an appropriate manner. This process is aligned with market practice
REPORTING
NIBC intends to report on allocation of proceeds on the Company’s website, on an annual basis, until full allocation. NIBC intends to show allocation at the category level and on an aggregated basis for all loans eligible according to the Framework. This may be combined with reporting for Sustainable Bonds or other types of Sustainable Financing. In addition, NIBC is committed to reporting on relevant impact metrics. This process is aligned with market practice.