Second-Party Opinion Download

Sustainalytics is of the opinion that the QBE Gender Equality Bond Framework is credible and impactful, and aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. QBE intends to use the proceeds to finance corporate bonds of companies that fulfill both of the following two criteria: (i) being signatory to the United Nations Women’s Empowerment Principles (UN WEP), joint initiatives of the UN Global Compact and UN Women, and (ii) recognised as one of the top 200 ranked companies in the current Equileap 2018 Gender Equality Global Report and Ranking. Sustainalytics considers that the use of proceeds can contribute to foster workplace gender equality while advancing the UN Sustainable Development Goals, especially SDG 5.

PROJECT EVALUATION/SELECTION

QBE has a three-step project evaluation and selection process to identify eligible corporate bonds. QBE’s Investment Team identifies corporate bonds that meet the company’s investment risk/return criteria. The Portfolio Manager of Impact and Responsible Investments (PMIRI) conducts a deeper assessment on the gender bond eligibility criteria and presents every bond from an eligible company to the QBE Gender Equality Bond Committee. This committee, which consists of a QBE Group NonExecutive Director, the QBE Group Treasurer, the QBE Group Head of Diversity and Inclusion and the QBE Group Chief Investment Officer, is responsible for the final selection. This process is in line with current market practices.

MANAGEMENT OF PROCEEDS

QBE’s gender equality bonds’ proceeds will be managed and tracked by QBE’s internal information systems through a register. Pending full allocation, proceeds may be invested in accordance with the company’s liquidity management policies in cash or cash equivalents, or used the repay existing borrowings under general credit facilities. This process is in line with current market practices.

REPORTING

QBE commits to report to investors annually on the allocation of proceeds on its website. The (i) allocation report will include the cost of investments, aggregate amounts of funds allocated to each of the eligibility criteria, the remaining balance of any unallocated Gender Equality Bond proceeds, and confirmation that the Use of Proceeds of any Gender Equality Bond(s) issued conforms with the QBE Gender Equality Bond Framework. Regarding the (ii) impact report, where feasible, QBE intends to report on the percentage of women on the boards of the financed companies. Sustainalytics views QBE’s allocation and impact reporting to be in line with current market practice.