Project Details
Project
OCBC Sustainability Bond Second-Party Opinion
Client
OCBC Bank
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
N/A
Location
Singapore
Evaluation Date
Nov 2019
Evaluation Summary
Sustainalytics is of the opinion that the OCBC Sustainability Bond Framework is credible and impactful, and aligns with the four core components of the ICMA Green Bond Principles 2018, the Social Bond Principles 2018, and the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The ten eligible use of proceeds categories are aligned with those recognized by the Green Bond Principles or the Social Bond Principles. Sustainalytics considers the range of eligible projects to have positive environmental or social impacts and to advance the UN Sustainable Development Agenda.
PROJECT EVALUATION/SELECTION
OCBC’s project selection involves a two-step process, with initial screening by the relevant business units and final validation by the Sustainability Council, which consists of members of the Management Committee. OCBC has outlined a comprehensive list of exclusions which serve to mitigate environmental or social risk associated with the eligibility criteria. This is in line with market practice.
MANAGEMENT OF PROCEEDS
OCBC has committed to tracking the proceeds using its established internal information system, and to using a register to track the allocation of funds to eligible projects. Unallocated proceeds may be temporarily invested in cash, cash equivalent, or high-quality marketable instruments. This is in line with market practice.
REPORTING
OCBC intends to report on an annual basis, providing the amounts allocated and impact information at the category level. In Sustainalytics’ view, reporting on these metrics is in line with market practice.