Second-Party Opinion Download

Project Details


Pepper Money Limited Green Bond Framework Second-Party Opinion (2022)


Pepper Money Limited

Project Type

Green Bond/Loan

Industry Group


Use of Proceeds

Green buildings



Evaluation Date

Feb 2022

Evaluation Summary

Sustainalytics is of the opinion that the Pepper Money Limited 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:


The eligible category for the use of proceeds – Green Residential Buildings – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category are expected to contribute to the decarbonization of Australia’s residential building stock and advance the UN Sustainable Development Goals, specifically SDG 9. 


Pepper Money Limited’s internal process for identifying and monitoring projects will be carried out by its Green, Social & Sustainability Bonds Investment Forum, which is composed of members from various departments, including Treasury, Finance, Investor Relations and Human Resources. The Green, Social & Sustainability Bonds Investment Forum will give final approval to projects identified as eligible by Pepper Money’s Funding and Analytics Team. Pepper Money’s Credit Policy, Risk Management Policy and Risk Management framework applies to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.


Pepper Money Limited’s Funding and Analytics Team will be responsible for the management and allocation of proceeds to eligible projects, under oversight from the Green, Social & Sustainability Bonds Investment Forum. The Company will use its internal tracking system to track and report the allocation of proceeds, using a green bond eligible portfolio and intends to allocate all proceeds to eligible instruments within three years of issuance. Pending allocation, proceeds may be temporarily invested in accordance with Pepper Money Limited’s investment guidelines. Sustainalytics considers this process to be in line with market practice.


Pepper Money Limited intends to report on the allocation of proceeds in its Green Bond report on its website until full allocation. Allocation reporting will include the net proceeds of the green bonds issued under the Framework along with details on unallocated proceeds and temporary investments. In addition, Pepper Money is also committed to reporting on relevant impact metrics. Sustainalytics views Pepper Money’s allocation and impact reporting as aligned with market practice.