Project Details
Project
UBS Green Funding Framework Second-Party Opinion Update (2021)
Client
UBS
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Switzerland
Evaluation Date
Nov 2021
Evaluation Summary
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.
PROJECT EVALUATION / SELECTION
UBS’s internal Group Risk Control department will assess and approve the asset selection under this Framework in consultation with relevant environmental experts. UBS’s environmental and social risk management processes and standards are applicable to all allocation decisions made under the Framework. 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. Group Treasury will manage any amounts of Green Funding that are not yet allocated to Eligible Assets in accordance with UBS's liquidity policy. UBS intends to monitor the allocation of proceeds to Eligible Assets across green bonds and deposits to avoid dual usage. Sustainalytics considers the management of proceeds practice in line with market practice.
REPORTING
UBS intends to publish on its website a Green Funding Investor Report on an annual basis. Allocation reporting will include information on the amount of proceeds allocated, the share of new financing and refinancing, and unallocated proceeds. In addition, UBS is committed to reporting on relevant impact metrics. Sustainalytics views UBS’s allocation and impact reporting as aligned with market practice.
Alignment of Deposits with Market Expectations
The UBS Green Funding Framework also includes deposits as eligible financial products. Sustainalytics is of the opinion that the principles of impact and transparency that underly the sustainable investment industry, are applicable to deposits, and that UBS’s internal processes for deposits and the use of funds align with those principles.