Project Details
Project
Pacific Life Sustainable Financing Framework Second-Party Opinion (2024)
Client
Pacific Life Insurance Company
Project Type
Sustainability Bond/Loan
Industry Group
Insurance
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Water/waste water management; Conservation; Clean transport; Eco-efficient products; Natural resources/land use management; Education; Affordable housing;
Location
U.S.
Evaluation Date
Jun 2024
Evaluation Summary
Sustainalytics is of the opinion that the Pacific Life Sustainable Financing Framework is credible and impactful and aligned with the four core components of the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and the Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 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 Financing Steering Committee will be in charge of reviewing and selecting projects. The committee is comprised of members from Pacific Life’s Institutional Capital Markets Group, Investment Management, Commercial Real Estate, Law Department, Corporate Affairs and Brand Management. The Capital Markets Group will ultimately approve eligible projects. Pacific Life has internal processes to address environmental and social risks commonly associated with the financed projects. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Pacific Life will track allocations through an internal register overseen by its Capital Markets Group, and the register will show an allocation amount equal to the net proceeds for the full term of the sustainable finance instruments. Pacific Life intends to allocate net proceeds within 24 months of each issuance. Pending full allocation, an amount equal to the balance of proceeds will be invested 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 will provide a standalone annual allocation and impact report on its website on an annual basis until full allocation of each issuance. Allocation reporting will include management’s assertion that the use of proceeds complies with the Framework, amounts allocated to eligible categories, amount of unallocated net proceeds and share of financing versus refinancing. Sustainalytics views Pacific Life’s allocation and impact reporting as aligned with market practice.