Project Details
Project
Sun Life Financial Inc Sustainability Bond Framework Second-Party Opinion (2024)
Client
Sun Life
Project Type
Sustainability Bond/Loan
Industry Group
Insurance
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Clean transport; Water/waste water management; Natural resources/land use management; Eco-efficient products; Conservation;
Location
Canada
Evaluation Date
Apr 2024
Evaluation Summary
Sustainalytics is of the opinion that the Sun Life Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond 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 and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 6, 7, 10, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
SLC Management is responsible for maintaining and updating an inventory of general account assets that are eligible under the Framework. Sun Life’s Sustainability Bond Council, which includes the Chief Investment Officer, Treasurer and Head of Capital Planning, and Chief Sustainability Officer, will be responsible for evaluating and selecting eligible assets semi-annually. SLC Management is responsible for managing environmental and social risks associated with the financed projects. This is aligned with market practice.
MANAGEMENT OF PROCEEDS
SLC Management will be responsible for tracking and managing proceeds through the Company’s Sustainable Bond Register. Sun Life intends to fully allocate proceeds within 18 months of issuance. Pending allocation, unallocated proceeds will be managed according to Sun Life’s normal liquidity practices. This is aligned with market practice.
REPORTING
Sun Life commits to report on the allocation of proceeds on an annual basis until full allocation publicly on its website. Allocation reporting will include funds raised from each sustainability bond, an overview of the allocated funds to each eligible project category, the amount of unallocated proceeds and the financing versus refinancing amounts. In addition, Sun Life is committed to reporting on relevant impact metrics. Sustainalytics considers the allocation and impact reporting commitments to be aligned with market practice.