Second-Party Opinion Download

Sustainalytics is of the opinion that SBM’s Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds: renewable energy, and pollution prevention and control are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the biomass power plant will lead to positive environmental impacts and advance the UN Sustainable Development Goal 7 and 12.

PROJECT EVALUATION/SELECTION

SBM’s internal process for evaluating and selecting projects is in line with market practice. Projects are proposed to SBM’s Investment Working Group (IWG) and screened for corporate social responsibility relevance. Screened projects then go to the Green Bond Committee, composed of representatives from relevant departments at Altri Group, SBM’s indirect parent company, which evaluates the eligibility against the criteria in the framework and determines whether to proceed.

MANAGEMENT OF PROCEEDS

SBM’s internal process for evaluating and selecting projects is in line with market practice. Projects are proposed to SBM’s Investment Working Group (IWG) and screened for corporate social responsibility relevance. Screened projects then go to the Green Bond Committee, composed of representatives from relevant departments at Altri Group, SBM’s indirect parent company, which evaluates the eligibility against the criteria in the framework and determines whether to proceed.

REPORTING

SBM intends to make allocation reporting available on an annual basis until the full allocation of the bond. The company will hire a third-party auditor to provide external validation of allocated funds. In addition, SBM is committed to impact reporting on relevant metrics on an annual basis. Sustainalytics views SBM’s allocation and impact reporting as aligned with market practice.