Second-Party Opinion Download

Project Details

Project

Sumitomo Mitsui Financial Group, Inc./Sumitomo Mitsui Banking Corporation's Green Bond Framework Second-Party Opinion (2021)

Client

Sumitomo Mitsui Financial Group, Inc./Sumitomo Mitsui Banking Corporation

Project Type

Green Bond/Loan

Location

Japan

Evaluation Date

Dec 2021

Evaluation Summary

Sustainalytics is of the opinion that the Sumitomo Mitsui Financial Group, Inc. / Sumitomo Mitsui Banking Corporation’s Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, and Pollution Prevention and Control – are aligned with those recognized by the Green Bond Principles 2021. 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 12.

PROJECT EVALUATION / SELECTION

Sumitomo Mitsui Financial Group, Inc.’s IR Department and Sumitomo Mitsui Banking Corporation’s Treasury Department decide the eligible projects for the green bond based on the Framework’s eligibility criteria. The final decision will be made by the General Manager of Corporate Planning Department of Sumitomo Mitsui Financial Group, Inc. Sumitomo Mitsui Banking Corporation has in place environmental and social risk management processes that are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Sumitomo Mitsui Financial Group, Inc.’s IR Department will monitor and manage the allocation of green bond proceeds once a year using an internal system. The net proceeds will be extended to Sumitomo Mitsui Banking Corporation in a form of an inter-group loan. Pending allocation, unallocated proceeds will be invested in overnight or other short-term financial instruments. This is in line with market practice.

REPORTING

Until the full allocation of proceeds, Sumitomo Mitsui Financial Group, Inc. and Sumitomo Mitsui Banking Corporation will report on the allocation of proceeds and positive environmental impacts annually on its website.  Allocation reporting will include the amount of allocated and unallocated proceeds, details of the projects funded, current funded amounts, and initial funding dates. Impact reporting will provide, to the extent practicable, quantitative and qualitative indicators on a project according to eligible categories. This is in line with market practice.

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