Project Details
Project
Truist Sustainable Financing Framework Second-Party Opinion
Client
Truist Financial Corporation
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Feb 2021
Evaluation Summary
Sustainalytics is of the opinion that the Truist Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, and Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Access to Education, Affordable Housing, Access to Essential Infrastructure, Socioeconomic Advancement and Empowerment, Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use – 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 (“SDGs”), specifically SDGs 4, 6, 7, 8, 11 and 15.
PROJECT EVALUATION/SELECTION
Truist Financial’s Sustainable Financing Group will be responsible for the ultimate review and selection of Eligible Assets in accordance with the eligibility criteria. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Truist Financial will establish the Eligible Portfolio to include Eligible Assets and ensure proceeds are allocated accordingly. Truist will invest unallocated proceeds in accordance with its normal liquidity activities held in cash, cash equivalents or government securities. This is in line with market practice.
REPORTING
Truist Financial intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include details on category-level allocation of proceeds and balance unallocated funds. Truist intends on reporting on impact indicators such as number of educational institutions funded, number of affordable housing units built, and GHG emissions avoided per year. Based on the commitment to periodically report portfolio allocation along with the reporting on category-wise impact indicators in the Framework, Sustainalytics considers this to be in line with market practice.