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 – Renewable Energy, Green Buildings and Clean Transportation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.  

PROJECT EVALUATION AND SELECTION

The Bank’s Credit Committee will be responsible for the evaluation and selection of eligible projects in line with the Framework’s eligibility criteria. The Committee consists of the Bank’s Deputy Group Chief Executive, and the heads of Credits, Corporate Banking and Finance, and Corporate Credit Managers, among other representatives. Additionally, the internal control unit in the Credits Department will control the selection of eligible projects and ensure documentation in line with the Framework’s eligibility criteria. The Committee is also responsible for mitigating environmental and social risks associated with the eligible assets and projects, and ensuring compliance with national and international legislation. Sustainalytics considers Sydbank’s risk management systems to be adequate, and the project evaluation and selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Sydbank’s Credit Committee will be responsible for the management and allocation of proceeds to eligible assets and projects in the Eligible Asset Portfolio. The Bank will track the allocation of proceeds per issuing entity using dedicated green registries. This is in line with market practice. 

REPORTING

The Bank commits to report on the allocation of proceeds and corresponding impacts in an allocation report and impact report, respectively, on an annual basis until full allocation of bond proceeds and will make the reports publicly available on the Bank’s website. The allocation report will include: i) the total amount of proceeds allocated to eligible green projects per category; ii) the proportion of proceeds allocated to the refinancing of existing eligible green projects; and iii) unallocated proceeds. The impact report will include: i) annual energy production (in MWh); ii) GHG emissions avoided (in tonne/year); and iii) annual energy savings (in MWh). Sustainalytics views Sydbank’s allocation and impact reporting as aligned with market practice.