Project Details
Project
VakıfBank Sustainable Finance Framework Second-Party Opinion (2023)
Client
Turkey Vakiflar Bankasi TAO
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Clean transport; Energy efficiency; Pollution prevention and control; Water/waste water management; Affordable housing; Employment generation and Socio-economic empowerment; Food security; Access to essential services;
Location
Türkiye
Evaluation Date
Aug 2023
Evaluation Summary
Sustainalytics is of the opinion that the VakıfBank Sustainable Finance 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 proceeds1 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 or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
VakıfBank’s Sustainability Committee, which includes members from the Investor Relations, Environmental Management Service, and Environmental and Social Impact Analysis departments, will evaluate and select eligible projects in line with the Framework’s eligibility criteria. VakıfBank has in place an environmental and social risk management system tool to address environmental and social risks associated with projects financed. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
VakıfBank’s Sustainability Committee will manage the net proceeds using a portfolio approach and track allocation of net proceeds using a sustainability financing register. VakıfBank intends to allocate all proceeds to eligible projects within 24 months of the respective issuance date of the instrument. Pending allocation, VakıfBank will temporarily hold proceeds in cash and invest in other short-term liquid instruments. This is in line with market practice.
REPORTING
VakıfBank commits to report on the allocation of proceeds via allocation reports on an annual basis until full allocation. Allocation reporting will include the amount or percentage of allocation to the eligible green and social portfolio, examples of projects being financed, allocation by category and geographic distribution, share of financing versus refinancing and balance of unallocated proceeds. Additionally, VakıfBank commits to report on relevant impact metrics on a best-effort basis. This is aligned with market practice.