Project Details
Project
Tanner Sustainability Financing Framework Second-Party Opinion (2023)
Client
Tanner Servicios Financieros SA
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
SME finance and microfinance; Clean transport; Socio-economic advancement;
Location
Chile
Evaluation Date
Oct 2023
Evaluation Summary
Sustainalytics is of the opinion that the Tanner Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023, and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Socioeconomic Advancement and Empowerment: MSMEs, Socioeconomic Advancement and Empowerment: Auto Financing, and Clean Transportation – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 8, 9, 10 and 11.
PROJECT EVALUATION AND SELECTION
Tanner’s ESG Committee, consisting of senior representatives from the Corporate, Auto Financing, and Finance divisions, will be responsible for the evaluation and selection of eligible assets as per the criteria outlined in the Framework. The Company has an environmental and social risk management system to address the environmental and social risks associated with the projects financed. Based on an established process for project selection and the presence of a general risk management process, Sustainalytics considers these processes to be aligned with market practice.
MANAGEMENT OF PROCEEDS
Tanner’s Administration will be responsible for the management and allocation of proceeds using internal tracking systems. The Company intends to fully allocate proceeds within 36 months of the respective issuance date. Unallocated net proceeds will be held in cash, cash equivalents or other forms of liquid securities and investments. This is aligned with market practice.
REPORTING
Tanner commits to report on the allocation and impact of proceeds in an annual report on its Investor Relations website on an annual basis until maturity. In addition, Tanner intends to report on relevant impact metrics. Sustainalytics views Tanner’s allocation and impact reporting as aligned with market practice.