Project Details
Project
Skandiabanken Green Bond Framework Second-Party Opinion (2023)
Client
Skandiabanken AB
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings
Location
Sweden
Evaluation Date
Nov 2023
Evaluation Summary
USE OF PROCEEDS
The eligible category for the use of net proceeds – Green Buildings – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION AND SELECTION
Skandiabanken’s Green Bond Committee will be responsible for evaluating and selecting eligible loans in line with the Framework’s eligibility criteria. The committee comprises representatives from Skandiabanken’s Treasury and Sustainability departments. Eligible mortgages and loans must comply with Swedish regulation, and Skandiabanken has in place a mechanism to manage and mitigate risks associated with them. Sustainalytics considers this and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Skandiabanken’s Treasury Department will be responsible for the management and allocation of net proceeds to eligible loans. The Bank will use its internal tracking systems to track the allocation of net proceeds and intends to allocate all net proceeds immediately at or within 12 months of issuance. Pending allocation, net proceeds may be temporarily held in the Bank’s liquidity reserve and held as cash or placed in liquid instruments. Sustainalytics considers this process to be in line with market practice.
REPORTING
Skandiabanken commits to report on the allocation of net proceeds in its Green Bond Investor Report on its website on an annual basis until the maturity of any outstanding green bond issued under the Framework. The allocation report will contain information about the amount of net proceeds and unallocated net proceeds, a breakdown by asset category and the share of financing versus refinancing. In addition, Skandiabanken will report on relevant impact metrics on a best-effort basis. Sustainalytics views the allocation and impact reporting as aligned with market practice.