Project Details
Project
Sumitomo Mitsui Trust Bank Green Bond Second-Party Opinion
Client
Sumitomo Mitsui Trust Bank, Limited
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Japan
Evaluation Date
Aug 2018
Evaluation Summary
Sustainalytics is of the opinion that the Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST) 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 categories for the use of proceeds - (a) renewable energy, (b) energy efficiency, (c) clean transportation, (d) pollution prevention and control, and (e) green buildings are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance some of the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
SuMi TRUST’s project evaluation and selection process includes several project teams including Wholesale Business Planning Department, Structured Finance Department, and the Sustainability Management Office. Additionally, it applies the Equator Principles and recognized third party green building certifications in evaluating and selecting projects. This is in line with market practice.
MANAGEMENT OF PROCEEDS
SuMi TRUST will monitor the net proceeds from the sale of the bonds and track allocation to Eligible Green Projects with an internal loan data system, which is in line with market practice.
REPORTING
SuMi TRUST intends to report on allocation of proceeds on its website on an annual basis. In addition, SuMi TRUST is committed to impact reporting on relevant environmental performance indicators, such as CO2 emissions, energy saved, and the number and certification levels of green assets that achieve third party certification. In Sustainalytics’ view, reporting on these metrics is in line with market practice.