Project Details
Project
OP Corporate Bank plc Green Bond Framework Second-Party Opinion (2024)
Client
OP Corporate Bank Plc
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Pollution prevention and control; Clean transport; Conservation; Climate change adaptation;
Location
Finland
Evaluation Date
Mar 2024
Evaluation Summary
USE OF PROCEEDS
The eight eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 9, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
OP Financial Group’s Green Bond Committee is responsible for the evaluation and selection of credible projects that are aligned with the criteria in the OP Corporate Bank plc Green Bond Framework. OP Corporate Bank has processes in place to identify and manage environmental and social risks associated with the eligible projects, which apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
OP Corporate Bank will track and monitor the allocation of proceeds through a Green Bond Register, where the credible assets will be monitored by the Green Bond Committee on a quarterly basis. OP Corporate Bank intends to allocate proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily held in cash and cash equivalents in accordance with OP Financial Group’s liquidity management policy, whereby carbon-intensive and controversial activities will be excluded. Green deposits issued under the Framework will be capped and replenished and have an allocation period shorter than the maturity of the deposits. This is in line with market practice.
REPORTING
OP Corporate Bank commits to report on the allocation of proceeds and corresponding impacts on its website on an annual basis. Allocation reporting will include the amount of green bonds outstanding, the aggregated amount of net proceeds allocated to each use of proceeds category, the origination timeframe and maturity profile of the loan portfolio and the balance of unallocated net proceeds. OP Corporate Bank is also committed to reporting on relevant impact metrics, achieved or expected, where feasible. Sustainalytics views OP Corporate Bank’s allocation and impact reporting as aligned with market practice.