Project Details
Project
Region Skane Green Bond Framework Second-Party Opinion (2024)
Client
Region Skane
Project Type
Green Bond/Loan
Industry Group
Sub-Sovereign
Use of Proceeds
Green buildings; Clean transport; Renewable energy;
Location
Sweden
Evaluation Date
Sep 2024
Evaluation Summary
Sustainalytics is of the opinion that the Region Skåne Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds - Green Buildings, Clean Transportation and Renewable Energy - are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.
PROJECT EVALUATION AND SELECTION
Region Skåne has established a Green Bond Committee which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. Region Skåne also has internal ESG policies and instructions to address environmental and social risks, which apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process and the risk management system in line with market practice.
MANAGEMENT OF PROCEEDS
Region Skåne’s Finance department will be responsible for the management of proceeds using a portfolio approach and will track their allocation through a green pool. Region Skåne intends to allocate proceeds within 12 months of each issuance. Pending full allocation, unallocated proceeds will be placed in Region Skåne’s liquidity reserves temporarily. This is in line with market practice.
REPORTING
Region Skåne will report on the allocation of proceeds and corresponding impact on its website on an annual basis until full allocation. Allocation reporting will include the total amount of outstanding green bonds, the share of financing versus refinancing, the breakdown of eligible projects by category, a description of selected eligible projects and the share of unallocated proceeds, if relevant. Sustainalytics views Region Skåne’s allocation and impact reporting commitments as aligned with market practice.