Project Details
Project
Santander Group Green, Social & Sustainability Funding Global Framework Second-Party Opinion (2023)
Client
Santander Group
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Energy efficiency; Clean transport; Eco-efficient products; Sustainable agriculture; Water/waste water management; Green buildings; Climate change adaptation; Education; Health; Access to essential services;
Location
Spain
Evaluation Date
Jun 2023
Evaluation Summary
Sustainalytics is of the opinion that the Santander Group Green, Social & Sustainability Funding Global Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Green Loan Principles 2023, Social Bond Principles 2021 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories1 for the use of proceeds are aligned with those recognized by both the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7, 9, 11, 12, 13 and 15.
PROJECT EVALUATION AND SELECTION
Santander Group has established a Global Sustainability Funding Steering group and Local Sustainability Funding Steering groups, which are responsible for the project evaluation and selection process in accordance with the eligibility criteria under the Framework. Santander Group has set up policies to assess environmental and social risks associated with the borrower’s activities, which are applicable to Santander Group’s all lending decisions. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Santander Group’s Local Sustainability Funding Steering groups will manage and track the allocation of proceeds on a portfolio basis through an Eligible Assets Register. The deposits issued under the Santander Group Green, Social & Sustainability Funding Global Framework will have a fixed term and will be capped and replenished. Santander Group intends to allocate all the proceeds within three years from issuance. Pending full allocation, proceeds will be temporarily held in accordance with Santander Group’s normal liquidity management policy. This is in line with market practice.
REPORTING
Santander Group commits to report on the allocation of proceeds and corresponding impact through an annual report until full allocation. Allocation reporting will include the amount of proceeds allocated to each eligible asset including eligible asset category, the balance of unallocated proceeds and the share of refinancing versus financing. Sustainalytics views Santander Group’s allocation and impact reporting as aligned with market practice.