Project Details
Project
Shinhan Bank Sustainable Development Goals Financing Framework Second-Party Opinion (2022)
Client
Shinhan Bank
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Mar 2022
Evaluation Summary
Sustainalytics is of the opinion that the Shinhan Bank Sustainable Development Goals Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021 Green Loan Principles 2021 and Social Loan Principles. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by 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 or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 8, 9, 10, 11 and 14.
PROJECT EVALUATION / SELECTION
Shinhan Bank has established a Sustainable Development Goals Financing Working Group (SFWG) which is comprised of senior representatives from various departments. Different business units will be responsible for evaluating and selecting eligible projects and submitting to the SFWG for approval. Shinhan Bank will undertake a loan review process which is applicable to all allocation decisions. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Shinhan Bank’s Treasury Department will be responsible for the management and allocation of proceeds using a register in Shinhan Bank’s internal information system. Pending allocation, proceeds will temporarily be held in cash or cash equivalents in accordance with Shinhan Bank’s liquidity policy. This is in line with market practice.
REPORTING
Shinhan Bank intends to report on the allocation of proceeds on its website on an annual basis until full allocation. The allocation report will include the amount of net proceeds allocated to eligible projects, a selection of brief investment or financing descriptions and the share of financing versus refinancing. In addition, Shinhan Bank is committed to reporting on relevant impact metrics, where feasible. Sustainalytics views Shinhan Bank’s allocation and impact reporting as aligned with market practice.