Project Details
Project
Rizal Commercial Banking Corporation Sustainable Finance Framework Second Party Opinion (2024)
Client
Rizal Commercial Banking Corporation
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Clean transport; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Sustainable aquaculture/fisheries; Water/waste water management; Affordable basic infrastructure; Access to essential services; Employment generation and Socio-economic empowerment; Affordable housing; Socio-economic advancement;
Location
Philippines
Evaluation Date
Feb 2024
Evaluation Summary
Sustainalytics is of the opinion that the RCBC Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023, Social Loan Principles 2023, ASEAN Sustainability Bond Standards 2018, ASEAN Green Bond Standards 2018 and ASEAN Social Bond Standards 2018. This assessment is based on the following:
USE OF PROCEEDS:
The eligible categories for the use of proceeds
are aligned with those recognized by the Green Bond Principles,
Social Bond Principles, Green Loan Principles, Social Loan Principles
ASEAN Sustainability Bond Standards, ASEAN Green Bond Standards
and ASEAN Social Bond Standards. 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, 5, 6, 7, 8, 9, 10, 11, 12, 14
and 15.
PROJECT EVALUATION AND SELECTION :
RCBC’s Sustainable
Finance Committee will be responsible for evaluating and approving
eligible projects in line with the Framework’s eligibility criteria. RCBC
will undertake environmental and social risk assessments that
adhere to its internal policies where relevant. Sustainalytics
considers the risk management systems to be adequate and the
project evaluation and selection process to be in line with market
practice.
MANAGEMENT OF PROCEEDS:
RCBC’s Balance Sheet Management
Team and Sustainable Finance Committee will be responsible for
management and tracking of proceeds using a portfolio approach.
RCBC intends to fully allocate proceeds within two years of issuance
on a best-efforts basis. Pending allocation, proceeds will be
temporarily held in cash or cash equivalents. This is in line with
market practice.
REPORTING:
RCBC intends to report on the allocation of proceeds
and corresponding impact on its website on an annual basis until full
allocation. Allocation reporting may include a breakdown of proceeds
according to eligible assets, the balance of unallocated proceeds and
the proportion of proceeds for financing versus refinancing. Impact
reporting will include relevant impact metrics. Sustainalytics views
the allocation and impact reporting as aligned with market practice.