Project Details
Project
PNC Sustainable Financing Bond Framework Second-Party Opinion (2021)
Client
PNC Financial Services Group, Inc
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Clean transport; Green buildings; Education; Health; SME finance and microfinance;
Location
U.S.
Evaluation Date
Aug 2021
Evaluation Summary
Sustainalytics is of the opinion that the PNC Sustainable Financing Bond Framework (the “Framework”) is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, Affordable Housing, Access to Essential Services, and Socio-Economic Advancement and Empowerment – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals ("SDGs"), specifically SDGs 3, 4, 7, 8, 9, 10, and 11.
PROJECT EVALUATION / SELECTION
PNC's Sustainability Bond Approval Committee, comprised of members from the ESG and Debt Capital Markets teams, will review proposed Eligible Projects from business representatives and issue approvals in accordance with the eligibility criteria of the Framework. PNC conducts a baseline environmental and social risk assessment applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
PNC's Sustainability Bond Asset Tracking Group will track all funds raised through the issuance of bonds under the Framework using PNC's internal reporting system. All proceeds are expected to be allocated within 24 months of issuance and pending allocation, proceeds will be held in cash and cash equivalents. This is in line with market practice.
REPORTING
PNC intends to report on the allocation of proceeds on its website on at least an annual basis and for the period that a bond is outstanding. Allocation reporting will include a description of projects to which proceeds have been allocated, the total amount allocated to eligible projects, and unallocated balances. Impact reporting will include relevant qualitative and quantitative environmental and social impact indicators. Sustainalytics views PNC's allocation and impact reporting as aligned with market practice.