Project Details
Project
State Street Sustainability Bond Framework Second-Party Opinion (2022)
Client
State Street
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Affordable housing; Access to essential services; Socio-economic advancement;
Location
U.S.
Evaluation Date
Oct 2022
Evaluation Summary
Sustainalytics is of the opinion that the State Street Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social 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, Environmental Infrastructure and Services, Affordable Housing, Essential Services and Socio-economic Advancement and Employment – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4 7, 8, 10 and 11.
PROJECT EVALUATION / SELECTION
State Street’s ESG Bond Working Group (EBWG) is responsible for evaluating and selecting eligible projects and assets, which will be approved by State Street’s ESG Bond Issuance Committee (EBIC). State Street has in place a process to identify and manage environmental and social risks associated with ESG-related bond issuances. Sustainalytics considers these risk management systems to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
State Street’s EBWG will be responsible for the allocation of net proceeds using a Sustainability Bond Register. State Street intends to fully allocate net proceeds within 24 months following the issuance date. Pending allocation, net proceeds will be temporarily invested in cash, cash equivalent and marketable securities. This is in line with market practice.
REPORTING
State Street intends to report on allocation and impact of proceeds in a Sustainability Bond Report on an annual basis until full allocation. Allocation reporting will include the amount of net proceeds allocated to eligible projects, a list of eligible projects by category, and the outstanding amount of unallocated net proceeds. In addition, State Street is committed to reporting on expected impact metrics. Sustainalytics views State Street Corporation’s allocation and impact reporting as in line with market practice.