Project Details
Project
Royal Bank of Scotland Green, Social and Sustainability Bond Framework Second Party Opinion
Client
Royal Bank of Scotland
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.K.
Evaluation Date
Nov 2019
Evaluation Summary
Sustainalytics is of the opinion that the Royal Bank of Scotland Group plc (RBS) Green, Social and Sustainability Bond Framework is credible and impactful, and aligns with the Green Bond Principles 2018, Social Bond Principles 2018 and the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers the projects funded – (i) Renewable Energy, (ii) SME Financing, and (iii) Access to Essential Services – to have positive environmental and social impacts and to advance the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
RBS has established a Green, Social and Sustainability Bond Working Group responsible for selecting loans to be included in the bond portfolio and ensuring that the loans are aligned with the criteria of the framework. Sustainalytics considers this to be in line with market practice.
MANAGEMENT OF PROCEEDS
The net use of proceeds will be managed by RBS on a portfolio basis. The Working Group will on a semi-annual basis, review and approve allocation of bonds proceeds to eligible loans. Any asset that no longer meets the eligibility criteria will be removed and replaced with another eligible loan. Proceeds will be immediately allocated following issuance. Sustainalytics considers this to be in line with market practice.
REPORTING
RBS will make available to investors an allocation report shortly after the first bond issuance. This report will provide information related to: total amount of proceeds allocated to eligible loans, number of eligible loans included in the portfolio. RBS will also make available an Impact Report which will include relevant impact metrics. Sustainalytics considers this reporting to be in line with market practice.