UBS Green Funding Framework Second-Party Opinion (2021)
Sustainalytics is of the opinion that the UBS Green Funding Framework is credible and impactful and aligns with the four core components of the International Capital Market Association (ICMA) Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 11, “Make cities and human settlements inclusive, safe, resilient and sustainable.”
PROJECT EVALUATION / SELECTION
UBS’s internal Group Risk Control department will assess and pre-approve the process for asset selection under this Framework in consultation with relevant environmental experts. Projects will be identified and monitored by the respective asset owning business unit. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
UBS’s Group Treasury will be in charge of managing proceeds. UBS intends to hold sufficient Eligible Assets at incurrence of any Green Funding. In the case of relevant Eligible Assets exiting the pool of Eligible Assets due to divestments, maturities or other reasons, UBS will seek to replace such assets with other Eligible Assets. Group Treasury will manage any amounts of Green Funding that are not yet allocated to Eligible Assets in accordance with UBS's liquidity policy. Sustainalytics considers the management of proceeds practice in line with market practice and ICMA Green Bond Principles.
UBS will report on the allocation of proceeds on its website on an annual basis. In addition, UBS is committed to reporting on relevant impact metrics. Sustainalytics views UBS’s allocation and impact reporting as aligned with market practice and ICMA Green Bond Principles.