Project Details
Project
The Ford Foundation Social Bond Framework Second-Party Opinion
Client
The Ford Foundation
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jun 2020
Evaluation Summary
Sustainalytics is of the opinion that the Ford Foundation Social Bond Framework aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – socioeconomic advancement and empowerment – is aligned with those recognized by the Social Bond Principles that seek to achieve positive socioeconomic outcomes for target populations. Sustainalytics considers that the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 8 and 10.
PROJECT EVALUATION/SELECTION
Ford Foundation’s leadership and program teams, who include subject matter experts, will be in charge of selecting projects that meet the established criteria as well compliance with legal requirements. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Foundation will use a separate operating account for holding and disbursing funds, and a register will be established and used to record, on an ongoing basis, the allocation of net proceeds to Special Allocation Grants. The Foundation’s processes for management of proceeds is in line with market practice.
REPORTING
The Ford Foundation intends to report allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include a summary of the Special Allocation Grant program once full proceeds have been awarded and grant payments made. Sustainalytics views the allocation reporting as aligned with market practice.