Project Details
Project
Sandnes Sparebank Green Bond Framework Second-Party Opinion (2022)
Client
Sandnes Sparebank
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Sustainable agriculture; Clean transport;
Location
Norway
Evaluation Date
Oct 2022
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds –Green Buildings, Renewable Energy, Energy Efficiency, Sustainable Agriculture and Sustainable Management of Living Natural Resources, and Clean Transportation– are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to deliver positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 2, 7, 9, 11 and 12.
PROJECT EVALUATION / SELECTION
Sandnes Sparebank’s Green Bond Committee will evaluate and select eligible projects in line with the eligibility criteria. Sandnes Sparebank has in place internal risk management procedures that incorporate ESG factors in allocation decisions made under the Sandnes Sparebank Green Bond Framework. Sustainalytics considers the project selection process and the risk management system to be in line with market practice.
MANAGEMENT OF PROCEEDS
Sandnes Sparebank’s Treasury Department will manage the net proceeds on a portfolio basis and will track the allocation of proceeds using an internal sustainability bond register. Sandnes Sparebank intends to allocate all proceeds at issuance. Sandnes Sparebank will temporarily hold unallocated proceeds in cash or cash equivalents while pending allocation. Sustainalytics considers this process to be in line with market practice.
REPORTING
Sandnes Sparebank intends to report on the allocation of proceeds and the corresponding impact in its allocation and impact report on an annual basis until full allocation. Allocation reporting will include the list of eligible assets and projects financed, the amount of bond proceeds allocated, the amount of bond proceeds outstanding, the amount and number of eligible loans, the amount of proceeds allocated to eligible loans and the balance of unallocated proceeds. In addition, Sandnes Sparebank commits to reporting on relevant impact metrics. Sustainalytics views Sandnes Sparebank’s allocation and impact reporting commitments as aligned with market practice.