Project Details
Project
OP Corporate Bank Plc Green Bond Framework Second-Party Opinion (2022)
Client
OP Corporate Bank Plc
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Finland
Evaluation Date
Jan 2022
Evaluation Summary
Sustainalytics is of the opinion that the OP Corporate Bank Plc 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 – Renewable Energy, Transmission of Energy, Energy Efficiency, Green Buildings, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, and Clean Transportation – are aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 9, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
OP Corporate Bank Plc has established a Green Bond Committee comprised of an executive board member from the Group and senior management representatives from various departments. Different business units and the Bank’s Credit Analysis Team will be responsible for evaluating and selecting eligible projects in line with the Framework’s eligibility criteria and submitting to the Committee for final approval. The Bank will undertake an ESG analysis which is applicable to all allocation decisions made under the Framework. Sustainalytics considers the risk management system to be adequate and the process to be in line with market practice.
MANAGEMENT OF PROCEEDS
OP Corporate Bank Plc’s Corporate Lending and Capital Market Financing Unit will track the allocation of proceeds through an internal green bond register on a portfolio basis. The Bank intends to fully allocate the proceeds to eligible projects at the time of issuance. However, in case of unallocated proceeds, such proceeds will be temporarily held in accordance with the Bank’s liquidity management policy. Sustainalytics considers this process to be in line with market practice.
REPORTING
OP Corporate Bank Plc commits to report on the allocation of proceeds on its website on an annual basis. Allocation reporting will include the total amount of proceeds allocated to eligible categories, the balance of unallocated proceeds amongst others. In addition, OP Corporate Bank Plc is committed to reporting on relevant impact metrics. Sustainalytics views OP Corporate Bank’s allocation and impact reporting as aligned with market practice.