Project Details
Project
Rizal Commercial Banking Corporation Green Finance Framework
Client
Rizal Commercial Banking Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Philippines
Evaluation Date
Dec 2018
Evaluation Summary
Sustainalytics is of the opinion that the Rizal Commercial Banking Corporation (RCBC) Green Finance Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018, the Green Loan Principles 2018 and ASEAN Green Bond Standards 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – (i) Renewable energy, (ii) Green buildings, (iii) Clean transportation, (iv) Energy efficiency and (v) Pollution prevention and control – are aligned with those recognized by the Green Bond Principles, Green Loan Principles and ASEAN Green Bond Standards 2018. Sustainalytics considers that the Eligible Green Projects as defined in the Framework will contribute to the reduction of GHG emissions and waste and to advance the achievement of UN Sustainable Development Goals 7, 11, 12.
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
RCBC’s management of proceeds process is line with market practices as the company will manage and track its green proceeds using a portfolio approach. Pending full allocation, the unallocated proceeds will be held in cash and/or invested in short-term liquid instruments.
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 installed capacity and annual energy generation of renewables in MW, type of certification and number of buildings in each type, and type and number of public transportation projects financed. Sustainalytics considers that the scope and level of detail of RCBC reporting commitments are aligned with market practice.