Second-Party Opinion Download

Sustainalytics is of the opinion that the Spar Nord Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Clean Transportation, Green and Energy-Efficient Buildings, Renewable Energy, and Sustainable Water, Sewage and Waste Management – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11 and 12.

PROJECT EVALUATION AND SELECTION

Spar Nord’s Committee for Sustainable Finance will be responsible for the evaluation and selection of assets and projects in line with the Framework’s eligibility criteria. Further, the Committee is responsible for managing and mitigating environmental and social risks. Sustainalytics considers Spar Nord’s risk management systems to be adequate, and the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Spar Nord’s Market Risk Committee will be responsible for managing proceeds using a portfolio approach and tracking their allocation using a register. Spar Nord intends to fully allocate proceeds at the time of issuance. Unallocated proceeds (if any) will be temporarily held or invested in cash, short-term deposits or longer-dated liquid securities in accordance with Spar Nord’s liquidity portfolio. Based on the use of a tracking system and the disclosure of the temporary use of proceeds, Sustainalytics considers this process to be in line with market practice.

REPORTING

Spar Nord commits to report on the allocation of proceeds and corresponding impact in a green bond report on an annual basis until full allocation. Allocation reporting will include the outstanding amount of green bonds, the allocation of green bond net proceeds to each green loan category, the balance of green loans, the balance of unallocated proceeds (if any), as well as estimated EU taxonomy eligibility and alignment of green loans on a best-efforts basis. Sustainalytics considers this to be in line with market practice.