Project Details
Project
Sicredi Sustainable Finance Framework Second-Party Opinion (2022)
Client
Sicredi
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Natural resources/land use management; Green buildings; Energy efficiency; Clean transport; Access to essential services; Employment generation and Socio-economic empowerment; SME finance and microfinance;
Location
Brazil
Evaluation Date
May 2022
Evaluation Summary
Sustainalytics is of the opinion that the Sicredi Sustainable Finance 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 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Environmentally Sustainable Management of Living Natural Resources and Land Use, (iii) Green Buildings, (iv) Energy Efficiency, (v) Clean Transportation, (vi) Access to Essential Services, (vii) Employment Generation, through SME Financing and Microfinance, and (viii) Family Rural Production – 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 SDG 2, 7, 8, 9, 10, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
Sicredi’s Structured Operations and Sustainable Finance departments will be responsible for evaluating and selecting the eligible projects. Sicredi has in place processes to identify and mitigate environmental and social risks associated with its credit products and investments, which are applicable to all allocation decisions made under this Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Sicredi’s Treasury Team, together with the Sustainable Finance Team, will be responsible for the management and allocation of net proceeds. Sicredi intends to fully allocate the proceeds from each financial instrument within three years but reserves the right to do so until the instrument’s maturity. Unallocated proceeds will be invested in cash or cash equivalents. Sustainalytics considers market expectation to be allocation within 36 months.
REPORTING
Sicredi intends to report on allocation of proceeds on its website on an annual basis until full allocation or in case of material developments. In addition, Sicredi is committed to reporting on relevant impact metrics. Sustainalytics views Sicredi’s allocation and impact reporting as aligned with market practice.