Project Details
Project
Pacific Life Sustainable Financing Framework Second-Party Opinion (2023)
Client
Pacific Life Insurance Company
Project Type
Sustainability Bond/Loan
Industry Group
Insurance
Use of Proceeds
Green buildings; Energy efficiency; Renewable energy; Water/waste water management; Eco-efficient products; Natural resources/land use management; Conservation;
Location
U.S.
Evaluation Date
Jul 2023
Evaluation Summary
Sustainalytics is of the opinion that the Pacific Life Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings; Renewable Energy; Energy Efficiency; Sustainable Water and Wastewater Management; Terrestrial and Aquatic Biodiversity; Clean Transportation; Eco-efficient and Circular Economy-adapted Products, Production Technologies and Processes; Environmentally Sustainable Management of Living Natural Resources and Land Use; Access to Essential Services; and Affordable Housing – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 4, 6, 7, 9, 11, 12 and 14.
PROJECT EVALUATION AND SELECTION
Pacific Life’s Sustainable Bond Steering Committee, consisting of members from the Institutional Capital Markets Group, Investment Management, Commercial Real Estate, Law Department, Corporate Affairs and Brand Management, will oversee the identification and selection of the eligible projects. Pacific Life’s environmental and social risk assessment process is applicable to all allocation decisions. Sustainalytics considers the project selection process as aligned with market practice.
MANAGEMENT OF PROCEEDS
Pacific Life’s Capital Markets Group will be responsible for the management and tracking of proceeds. Pacific Life intends to achieve full allocation within 24 months of each issuance. Unallocated proceeds will be managed in accordance with the Company’s internal liquidity portfolio guidelines or in cash, cash equivalents or US Treasury securities. This is in line with market practice.
REPORTING
Pacific Life commits to report on the allocation and impact of its proceeds on its website on an annual basis until full allocation. Allocation reporting will include management’s assertion that the use of proceeds complies with the Framework, amount allocated to each eligible category, examples of eligible assets financed where feasible, amount of unallocated net proceeds and share of financing versus refinancing. In addition, Pacific Life commits to report on relevant impact metrics where feasible. Sustainalytics views Pacific Life’s allocation and impact reporting as aligned with market practice.