Project Details
Project
Ringkjøbing Landbobank Green Bond Framework Second-Party Opinion (2022)
Client
Ringkjøbing Landbobank A/S
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Denmark
Evaluation Date
Aug 2022
Evaluation Summary
Sustainalytics is of the opinion that the Ringkjøbing Landbobank 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 – Renewable Energy, Green Buildings, Clean Transportation and Sustainable Management of Living Natural Resources – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to deliver positive environmental impacts through investment in sustainable infrastructure and energy transition projects and advance the UN Sustainable Development Goals, specifically SDGs 7, 11, 12, 14 and 15.
PROJECT EVALUATION / SELECTION
Ringkjøbing Landbobank’s Green Bond Committee, chaired by the CEO or another member of the general management, will be responsible for evaluating and selecting eligible projects that are in line with the eligibility criteria. Ringkjøbing Landbobank has implemented a qualification process to identify potential environmental and social risks that is applicable to all allocation decisions. Sustainalytics considers this risk management system to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Ringkjøbing Landbobank’s Green Bond Committee will be responsible for the management of proceeds and will track the allocation of proceeds using a Green Bond Register, which it will review on a quarterly basis. Ringkjøbing Landbobank intends to allocate all proceeds at the time of issuance. However, in case of unallocated proceeds, such proceeds will be temporarily held in green bonds or cash. This is in line with market practice.
REPORTING
Ringkjøbing Landbobank intends to report on the allocation of proceeds in its annual Green Bond Report, which will be published on its website. Allocation reporting will include details such as the proportion of allocated and unallocated net proceeds. In addition, Ringkjøbing Landbobank is committed to reporting on relevant impact metrics such as estimated avoided CO2 emissions, number of certified green buildings in square metres, number of hectares of certified agricultural or forestry land and number of loans to certified fisheries. Sustainalytics views Ringkjøbing Landbobank’s allocation and impact reporting commitments as aligned with market practice.