Project Details
Project
Sparbanken Lidköping Green Bond Framework Second-Party Opinion (2024)
Client
Sparbanken Lidköping Green Bond Framework Second-Party Opinion (2024)
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Natural resources/land use management; Energy efficiency; Clean transport; Renewable energy;
Location
Sweden
Evaluation Date
May 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Environmentally Sustainable Management of Living Natural Resources and Land Use, Energy Efficiency, Clean Transportation and Renewable Energy – 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 7, 9, 11 and 15.
PROJECT EVALUATION AND SELECTION
Sparbanken Lidköping’s Green Bond Committee will be responsible for the project evaluation and selection process in accordance with the eligibility criteria under the Framework. Sparbanken Lidköping has adopted internal guidelines and processes, and complies with applicable regional regulations to manage environmental and social risks associated with eligible projects. Sustainalytics considers the project selection process and the risk management system to be in line with market practice.
MANAGEMENT OF PROCEEDS
Sparbanken Lidköping’s Finance Department will be responsible for the management of proceeds. The net proceeds will be managed on a portfolio basis and tracked using an internal Green Register. Pending full allocation, Sparbanken Lidköping may temporarily invest unallocated proceeds in accordance with the internal requirements for the liquidity reserve. Sustainalytics considers this to be in line with market practice.
REPORTING
Sparbanken Lidköping commits to report on allocation and impacts on an annual basis until full allocation and publish the reporting on Sparbanken Lidköping’s corporate website. Allocation reporting will include the total amount of green bonds outstanding, share of proceeds used for new financing or refinancing, breakdown of green loans by green loan category, descriptions of selected green loans financed or refinanced and share of unallocated proceeds, if any. Sustainalytics views Sparbanken Lidköping’s allocation and impact reporting commitments as aligned with market practice.