Second-Party Opinion Download

Sustainalytics is of the opinion that the Sparbanken Sjuhärad Green Funding Framework is credible and impactful and aligns with the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds - Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, and Environmentally Sustainable Management of Living Natural Resources and Land Use - are aligned with those recognized by both 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 Sjuhärad’s Finance department and client executive teams are responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria while the Green Bond Committee will oversee the selection process. All loans will undergo a credit risk analysis which incorporates environmental and social risk considerations. Furthermore, corporate loans will undergo an enhanced sustainability analysis to identify and mitigate related environmental and social risks. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Sparbanken Sjuhärad’s Finance department will manage proceeds through a green register on a portfolio basis, on behalf of the Green Bond Committee. Sparbanken Sjuhärad intends to allocate proceeds within 12 months of issuance on a best-effort basis. Pending full allocation, any unallocated proceeds will be retained in cash on the Bank’s account. This is in line with market practice.

REPORTING

Sparbanken Sjuhärad commits to report on allocation and impact on an annual basis in its Green Bond Impact Report, which will be made available on the Bank’s website until full allocation or for as long as any bonds remain outstanding in case of any material developments. Sparbanken Sjuhärad will obtain external verification on the allocation of proceeds annually until full allocation and in the event of any material developments. Sustainalytics views Sparbanken Sjuhärad’s allocation and impact reporting as aligned with market practice.