Second-Party Opinion Download

Sustainalytics is of the opinion that the RCBC Sustainable Finance Framework is credible and impactful, and aligns with the Social Bond Principles, Green Bond Principles, Sustainability Bond Guidelines, Green Loan Principles, ASEAN Social Bond Standards, ASEAN Green Bond Standard and ASEAN Sustainability Bond Standards 2018. This assessment is based on the following:

USE OF PROCEEDS

The seven green and five social eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, Green Loan Principles and ASEAN Sustainability Bond Standards 2018. Sustainalytics considers that the eligible green and social projects and lending activities as defined in the Framework will contribute to the decreasing environmental footprint of the Philippines, advancing employment generation, and improving access to essential services of vulnerable groups in Philippines. Sustainalytics considers that the eligible projects will advance the UN Sustainable Development Goals (SDGs), specifically SDG 3, 4, 6, 7, 8, 9, 10, 11, 12 and 15.

PROJECT EVALUATION/SELECTION

RCBC set up a two-step project evaluation and selection process in which business units undergo an initial project selection process based on RCBC’s Social and Environmental Management System Policy. An internal committee with cross departmental representation from Credit Risk, Business and Sustainability teams then conducts the final validation of Eligible Green Projects based on the eligibility criteria. This process is in line with market practice.

MANAGEMENT OF PROCEEDS

The net use of proceeds will be managed by its Balance Sheet Management Team and Enterprise Risk Division on a portfolio basis. Pending full allocation, the unallocated proceeds will be invested in cash and/or short-term liquid instruments according to the RCBC’s liquidity management policies. This process is in line with market practices.

REPORTING

RCBC intends to provide an annual allocation report covering data on the amount or percentage of allocation to the eligible portfolio of assets, examples of financed projects (subject to confidentiality considerations) and the balance of unallocated proceeds. In addition, RCBC intends to provide, where feasible, an impact report covering data on relevant impact metrics. Sustainalytics considers that the scope and level of detail of RCBC reporting commitments are aligned with market practice.