Second-Party Opinion Download

Sustainalytics is of the opinion that the State of the Netherlands Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that expenditures related to renewable energy, energy efficiency, clean transportation, climate change adaptation & sustainable water management will lead to positive environmental impacts and advance the UN Sustainable Development Goals (7) Affordable and Clean Energy, (9) Industry, Innovation and Infrastructure, (11) Sustainable Cities and Communities and (13) Climate Action.

PROJECT EVALUATION/SELECTION

The State of the Netherlands’ internal process for evaluating and selecting expenditures is aligned with market practice. Potential expenditures are initially screened by the Dutch State Treasury Agency (DSTA) before being evaluated and selected during the annual review carried out by the Green Bond Working Group, which is comprised of representatives from the DSTA, Ministry of Finance, Ministry of Economic Affairs and Climate Policy, and Ministry of Infrastructure and Water Management.

MANAGEMENT OF PROCEEDS

The State of the Netherlands will annually review the expenditure level of eligible expenditures and will decide how proceeds are allocated to these expenditures. The State of the Netherlands intends to allocate at least 50% of net proceeds to eligible expenditures in the budget year of issuance or future years. while up to 50% of an issuance could be allocated to government expenditures realized in the budget year preceding issuance. Expenditures are tracked based on the National Financial Annual Reporting. Unallocated proceeds will be managed according to the treasury policy of the Dutch State and proceeds will be tracked and reviewed until full allocation. The Dutch State’s processes for management of proceeds are aligned with market practice.

REPORTING

The State of the Netherlands intends to publish an allocation report annually, within three months following the publication of the National Financial Annual Report. The report will include an overview of the allocation of Green bond proceeds to the eligible expenditure categories, a breakdown of allocation per expenditure category and the unallocated proceeds (if any). Impact reporting will be published annually in an impact report and will provide information on the relevant impact categories. Sustainalytics views the State of the Netherlands’ allocation and impact reporting as aligned with market practice.