Second-Party Opinion Download

Sustainalytics is of the opinion that the Piraeus Green Bond Framework is credible and impactful and aligned 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 – Green Buildings, Renewable Energy, Energy Efficiency and Clean Transportation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.  

PROJECT EVALUATION AND SELECTION

Piraeus’ Green Bond Working Group will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The Green Bond Working Group consists of representatives from the Corporate Development and ESG, Investor Relations, Sustainable Banking, Treasury, Risk Management and Finance departments. Piraeus has an Environmental and Social Risk Management System in place through which all loans undergo an environmental and social risk evaluation. Sustainalytics considers the project selection and evaluation process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

The Green Bond Working Group will also be responsible for overseeing the management and allocation of proceeds. The net proceeds will be tracked using Piraeus’ internal green bond register. Piraeus intends to allocate proceeds within 24 months from issuance. Pending full allocation, unallocated proceeds will be temporarily held in accordance with Piraeus’ usual liquidity management policy, including treasury liquidity portfolio, cash, time deposit with banks or other short-term liquid instruments. This is in line with market practice. 

REPORTING

Piraeus commits to report on the allocation and impact of proceeds through an Annual Green Bond Report, which will be published on its website on an annual basis until full allocation. Allocation reporting will include the total amount of bonds outstanding, total amount allocated to eligible green assets (with specific flagging for EU Taxonomy-aligned assets), total amount allocated per eligible category, remaining unallocated total amount, and amount or percentage of new financing and refinancing. In addition, Piraeus intends to report on relevant impact metrics. Sustainalytics views Piraeus’ reporting commitments as aligned with market practice.