Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds - Green Buildings, Energy, Clean Transportation, Sustainable Water and Wastewater Management, Affordable Housing, Access to Essential Services, and Education and Vocational Training - are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7 and 11.

PROJECT EVALUATION AND SELECTION

RLB Tirol has established a Sustainable Finance Committee (SFB) which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The committee comprises representatives from the Treasury, Corporate, Retail and Business Customers, Risk, Credit Risk, Product Management, and Compliance/Legal departments. The SFB conducts an ESG due diligence for all eligible loans and classifies the loans based on their potential environmental or social impact and the EU Taxonomy classification. Sustainalytics considers these environmental and social risk management systems to be adequate and aligned with the requirements of GBP/SBP. This is in line with market practice.

MANAGEMENT OF PROCEEDS

RLB Tirol’s Risk and Credit Management department will be responsible for the management of net proceeds and will track their allocation using a portfolio approach or individual financing portfolios for particular financing instruments. The Bank intends to allocate proceeds within 24 months of each issuance. Pending full allocation, unallocated proceeds will be temporarily invested in short-term money and capital market products from central banks, states, supranational organizations, agencies, development banks, and financial institutions, as well as cash and sustainable bonds. This is in line with market practice.

REPORTING

RLB Tirol commits to report on the allocation of proceeds and the corresponding impact in reports that will be published on the Bank’s website on an annual basis until the maturity of the issued instrument. Allocation reporting will include the total amount and breakdown of outstanding instruments, the total amount and breakdown of proceeds allocated to the portfolio, the proceeds allocated to each category and the residual amount of unallocated proceeds. The allocation of proceeds will be reviewed by an external auditor or independent third party annually until the maturity of the issued instrument. Sustainalytics views RLB Tirol’s allocation and impact reporting as aligned with market practice.