Project Details
Project
Framework for Green and Social Loans in RBI Retail Banking Second-Party Opinion (2022)
Client
Raiffeisen Bank International
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Clean transport; Energy efficiency; Renewable energy; Sustainable agriculture; Sustainable forestry; Water/waste water management;
Location
Austria
Evaluation Date
Jul 2022
Evaluation Summary
Sustainalytics is of the opinion that the Framework for Green and Social Loans in RBI Retail Banking is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The seven eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics believes that investments in the eligible categories can deliver positive environmental and social impact, and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 8, 9, 10, 11, and 15.
PROJECT EVALUATION/SELECTION
Raiffeisen Bank International’s Network Banks (NWBs) will appoint relevant business units for evaluating and selecting eligible projects that are in line with the eligibility criteria. Raiffeisen Bank International monitors and manages ESG risks associated with eligible projects and assets through its Retail Credit Policy and the policy is applicable to all allocation decisions. Sustainalytics considers these risk management systems to be adequate. Sustainalytics considers this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Raiffeisen Bank International’s Network Banks will be responsible for the management and allocation of proceeds to eligible projects. The Network Banks will track net proceeds using an internal tracking system and intend to allocate all proceeds to eligible instruments within 36 months of issuance. Pending allocation, proceeds may be temporarily held in cash or other short-term instruments. Sustainalytics considers this process to be in line with market practice.
REPORTING
Raiffeisen Bank International intends to report on allocation of proceeds in its ESG retail report on an annual basis until full allocation. Allocation reporting will include the number and amount of loans allocated to eligible categories, loan types, and Network Banks, corresponding retail segments and the origination date and type of products in the portfolio. In addition, Raiffeisen Bank International is committed to reporting on relevant impact metrics. Sustainalytics views Raiffeisen Bank International’s allocation and impact reporting as aligned with market practice.