Project Details
Project
Principal Sustainable Finance Framework Second-Party Opinion (2021)
Client
Principal Financial Group Inc.
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jun 2021
Evaluation Summary
Sustainalytics is of the opinion that the Principal Sustainable Financing Framework is credible and impactful and aligns with the Green Bond Principles 2021, Social Bond Principles 2021, Sustainability Bond Guidelines 2021, Green Loan Principles 2021, and Social Loan 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, Sustainable Water and Wastewater Management, Clean Transportation, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Financial Inclusion: Inclusive Products and Services, Access to Essential Services: Health and Education, Affordable Housing, and Socio-Economic Advancement and Empowerment – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that the financing provided in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG Goals 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14 and 15.
PROJECT EVALUATION / SELECTION
Principal’s eligible projects will be identified by its Investment, Enterprise ESG, and Corporate Treasury teams and evaluated and selected by a dedicated Sustainability Bond Council. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Net proceeds will be monitored by Principal’s Investments and Sustainability teams via a Sustainable Finance Register. The Company intends to allocate proceeds within 18 months of each issuance under the Framework. Pending full allocation, the proceeds will be invested according to Principal’s normal liquidity activities. This is in line with market practice.
REPORTING
Principal intends to report on the allocation of proceeds on its website annually, until full allocation. Allocation reporting will be validated by a third-party and include the balance amount of allocated and unallocated net proceeds, as well as the description of selected projects. The Company is also committed to reporting on relevant impact metrics. Sustainalytics views Principal’s allocation and impact reporting as aligned with market practice.