Second-Party Opinion Download

Sustainalytics is of the opinion that the Sydbank Green Bond Framework is credible and impactful and aligns with 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 – (i) Renewable Energy, (ii) Green Buildings, (iii) Clean Transportation, (iv) Sustainable Use of Natural Resources, and (v) Recycling and Sustainable Production – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 11, 12, 14 and 15.

PROJECT EVALUATION / SELECTION

Sydbank’s internal process in evaluating and selecting projects is managed by Sydbank’s Credit Committee, which is responsible for ensuring eligible green projects are aligned with eligibility criteria and consists of including but not limited to the members from the Deputy Group Chief Executive, Head of Credits, Head of Corporate Banking & Finance, and Head of Corporate Credit managers. Sydbank has an internal process for environmental and social risk management that applies to all allocation decisions.  Sustainalytics considers the risk management to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Sydbank’s processes for management of proceeds are overseen by Sydbank’s Credit Committee. Sydbank intends to fully allocate proceeds within 36 months after issuance. Pending allocation, unallocated proceeds will be temporarily held in a portfolio consisting of cash, cash equivalents or in ESG-oriented funds, where feasible. This is in line with market practice.

REPORTING

Sydbank intends to report on allocation of proceeds on its website on an annual basis, until full allocation of the proceeds. Allocation reporting will include the total amounts allocated to eligible projects per category, the balance of unallocated amounts and the share of financing versus refinancing. The impact report will include relevant impact metrics, where feasible, such as  annual GHG emissions avoided, annual GHG and energy savings. Sustainalytics views Sydbank’s allocation and impact reporting as aligned with market practice.