Project Details
Project
Standard Bank Group Sustainable Finance Framework Second-Party Opinion (2023)
Client
Standard Bank Group Limited
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Climate change adaptation; Green buildings; Clean transport; Natural resources/land use management; Conservation; Water/waste water management; Affordable housing; Access to essential services; Affordable basic infrastructure; Employment generation and Socio-economic empowerment; Food security; Socio-economic advancement; Eco-efficient products;
Location
South Africa
Evaluation Date
Oct 2023
Evaluation Summary
Sustainalytics is of the opinion that the Standard Bank Group Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental and social impacts, and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15.
PROJECT EVALUATION AND SELECTION
Standard Bank Group’s Sustainable Finance team, supported by relevant originating business units, including but not limited to Corporate and Investment Banking, Business and Commercial Banking, and Personal and Private Banking, will be responsible for evaluating and selecting eligible projects in line with the Framework’s eligibility criteria. Standard Bank Group’s Environmental and Social Management System applies to eligible allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and aligned with market expectations. For additional details, see Section 2. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Standard Bank Group’s Sustainable Finance team will manage the net proceeds using a portfolio approach and will track the allocation of net proceeds using an allocation register. Standard Bank Group intends to allocate all proceeds to eligible assets within two years of issuance. Pending allocation, unallocated proceeds will be temporarily held or invested in its treasury liquidity portfolio, in cash or other short-term and liquid instruments. Sustainalytics considers this process to be aligned with market practice.
REPORTING
Standard Bank Group commits to report on the allocation and impact of proceeds through a publicly available Environmental, Social and Governance reporting suite of documents on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible asset category, the number of eligible assets in each category and the balance of unallocated proceeds. Sustainalytics views Standard Bank Group’s allocation and impact reporting as aligned with market practice.