Second-Party Opinion Download

Sustainalytics is of the opinion that the UnionBank Sustainable Finance Framework is credible and impactful and aligns with the Green Bond Principles 2018, Social Bond Principles 2022, and Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Sustainable Water and Wastewater Management, Green Buildings, Access to Essential Services, Employment Generation, Socio-Economic Advancement – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 6, 7, 8, 9, 10, 11 and 12.

PROJECT EVALUATION/SELECTION

UnionBank has established a Sustainable Finance Taskforce (“Taskforce”) that will be responsible for evaluating and selecting eligible assets and projects. The Taskforce will be chaired by the Company’s Chief Financial Officer and be comprised of representatives from its Treasury, Corporate Banking, and Sustainability Group. The Taskforce will replace projects that are no longer eligible and manage future updates to the Framework. Sustainalytics considers this to be in line with market practice.

MANAGEMENT OF PROCEEDS

UnionBank will maintain a Sustainable Finance Register to track proceeds raised under the Framework. Unallocated proceeds will be temporarily held in cash or cash equivalents, used to pay short-term debt, or invested in accordance with UnionBank’s corporate treasury policy. UnionBank will ensure that allocation of temporary proceeds are subject to the exclusionary criteria stated in the Framework. This is in line with market practice.

REPORTING

UnionBank intends to report on the allocation proceeds on an annual basis until full allocation through its Sustainable Finance Allocation and Impact Report. This Report will contain allocation and impact metrics such as proceeds earmarked for various project categories, amount of unallocated proceeds, percentage financing versus refinancing, annual generation of renewable energy, annual reduction of GHG and number of MSMEs financed. Sustainalytics views UnionBank’s allocation and impact reporting as aligned with market practice.