Project Details
Project
Odal Sparebank Green Bond Framework Second-Party Opinion (2023)
Client
Odal Sparebank
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Clean transport; Sustainable agriculture;
Location
Norway
Evaluation Date
Mar 2023
Evaluation Summary
Sustainalytics is of the opinion that the Odal Sparebank 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 and Sustainable Agriculture – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 2, 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
Odal Sparebank’s Green Bond Committee will evaluate and select eligible loans in line with the eligibility criteria. Odal Sparebank has adopted a general credit approval process that assesses the environmental and social risks of the financed activities, which is applicable to all eligible projects under the Framework. Sustainalytics considers the project selection process and the application of environmental and social risk management policies to be in line with market practice.
MANAGEMENT OF PROCEEDS
Odal Sparebank’s Treasury Department will manage the net proceeds on a portfolio basis and will track the allocation of proceeds through the Green Register. Odal Sparebank intends to reach full allocation within 12 months. Pending full allocation, Odal Sparebank will temporarily invest proceeds in cash or cash equivalents as per its internal requirements for the liquidity reserve. This is in line with market practice.
REPORTING
Odal Sparebank intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount of green bonds allocated, the share of proceeds used for financing or refinancing, the share of proceeds used for categories under the use of proceeds section and the balance of unallocated proceeds. Additionally, Odal Sparebank is committed to reporting on relevant impact metrics. Sustainalytics views Odal Sparebank’s allocation and impact reporting as aligned with market practice.