Second-Party Opinion Download

Sustainalytics is of the opinion that the SFIL Group Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles 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 Green Loan Principles. Sustainalytics considers clean transportation, sustainable wastewater management, pollution prevention and control, waste management, green buildings, renewable energy and energy efficiency to have positive environmental impacts and advance the following UN Sustainable Development Goals: (6) Clean Water and Sanitation, (7) Affordable and Clean Energy, (11) Sustainable Cities and Communities and (12) Responsible Consumption and Production.

PROJECT EVALUATION/SELECTION

SFIL Group’s internal process in evaluating and selecting projects is managed by the Green Bond Committee (GBC), which is comprised of Company Heads from market activities, funding & treasury, investor relations and middle office. The commercial teams of La Banque Postale provide proposed projects for green loans and SFIL Group verifies and validates the eligibility of these loans. The GNC oversees this process to ensure alignment with eligibility criteria. Sustainalytics views this process as aligned with market practice.

MANAGEMENT OF PROCEEDS

SFIL Group’s processes for management of proceeds is coordinated by the Treasury and Financial Markets division and is aligned with market practice. A green register will be established with a corresponding internal tracking system. Funds will be managed on a transactional basis, ensuring each transaction is allocated to a dedicated set of eligible loans. Pending full allocation, SFIL Group will manage unallocated proceeds in accordance with its treasury policy. If a loan becomes ineligible, SFIL Group will strive to remove and replace it as soon as practically possible.

REPORTING

SFIL Group intends to report on impact and allocation proceeds on its website on an annual basis. The allocation report will include the total amount of allocated proceeds to the Green Loan Portfolio, the total number of loans in the portfolio, average lifetime, distribution by project categories, financing vs refinancing and unallocated amounts. In addition, SFIL Group is committed to reporting on relevant impact metrics. Sustainalytics views SFIL Group’s allocation and impact reporting as aligned with market practice. Sustainalytics further bonds that SFIL Group intends to have third-party verification of its allocation reporting, which is considered best practice.