Project Details
Project
Sun Life Sustainability Bond Framework Second-Party Opinion
Client
Sun Life
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Canada
Evaluation Date
Mar 2019
Evaluation Summary
Sustainalytics is of the opinion that the Sun Life Financial Inc. (Sun Life) Sustainability Bond Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The five green categories and the one social category for eligible use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Green Buildings, (iv) Clean Transportation, (v) Sustainable Water Management, and (vi) Access to Essential Services – are aligned with those recognized by the Green Bond Principles 2018, the Social Bond Principles 2018, and the Sustainability Bond Guidelines 2018. Overall, the use of proceeds will, in Sustainalytics’ opinion, have positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically 1, 3, 6, 7, 8, and 11.
PROJECT EVALUATION/SELECTION
A dedicated Sustainability Bond Council will oversee Sun Life’s internal process in evaluating and selecting projects. The Sustainability Bond Council will be comprised of cross-functional team members including the chief investment officer, treasurer and head of capital planning, and the VP government, regulatory affairs & sustainability (or equivalent roles). This is in line with market practice.
MANAGEMENT OF PROCEEDS
Sun Life’s Treasury Team will maintain a Sustainability Bond Register to track the net use of proceeds. The amount equal to net proceeds of the Sustainability Bond will be earmarked for allocation to Eligible Assets. Sun Life intends to fully allocate each Sustainability Bond within 18 months of issuance. This is in line with market practice.
REPORTING
Sun Life intends to publish a Sun Life Sustainability Bond report within one year of issuance, and on an annual basis. Allocation reporting will include, among other things, the allocated amount to each eligible category, one or more examples of Eligible Assets financed under each eligible category, and the balance of unallocated proceeds. Impact reporting will include relevant environmental and social metrics, where feasible. Sustainalytics views Sun Life’s allocation and impact reporting as aligned with market practice.