Second-Party Opinion Download

Sustainalytics is of the opinion that the Sparebanken Vest 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 category for the use of proceeds – green buildings and renewable energy – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that offering mortgages for energy efficiency residential buildings, as well as lending to green buildings and hydroelectric projects, will lead to positive environmental impacts and advance the UN Sustainable Development Goals, in particular Goals 7, 9, and 11.

PROJECT EVALUATION/SELECTION

Sparebanken Vest has established a green bond committee, led by the Head of Sustainability and consisting of representatives from relevant departments, to select eligible loans for inclusion in its green portfolio. This is in line with market practice.

MANAGEMENT OF PROCEEDS

Sparebanken Vest will manage the proceeds of its green bond using a portfolio approach, with distinct portfolios for covered and senior bonds, and ensure over time that the value of its portfolio matches the outstanding balance of green bonds. Unallocated proceeds may be held in the Bank’s treasury liquidity portfolio. This is in line with market practice.

REPORTING

Sparebanken Vest will report annually on allocation and impact, on a portfolio basis. Allocation reporting will include information on the total amount allocated and the number of loans financed, while impact reporting will include relevant quantitative metrics, calculated using a methodology developed by a specialist third-party consultant. This is in line with market practice.