Second-Party Opinion Download

Sustainalytics is of the opinion that the Vancity Sustainability Issuance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and the Social Loan Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Clean Energy, Energy Efficiency, Clean Transportation, Indigenous Communities and Businesses, Women Owned and Controlled Business, Affordable Housing, and Access to Financial Services and Socioeconomic Advancement – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 7, 8, 10 and 11.  

PROJECT EVALUATION AND SELECTION

Vancity’s Sustainability Issuance Committee will be responsible for evaluating and selecting projects in line with the eligibility criteria under the Framework. The Committee is chaired by the Chief Financial Officer and comprises of representatives from the Risk, Treasury, Impact Strategy, Accountability Reporting, and Community Business and Real Estate departments. Sustainalytics considers the environmental and social risk management systems to be adequate and the project and the selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Vancity’s Sustainability Issuance Committee will be responsible for overseeing the management of proceeds. Vancity intends to allocate all proceeds within 36 months of issuance. Pending full allocation, unallocated proceeds may temporarily held in cash, cash equivalents, other highly liquid assets including government bonds, money market securities or other uses in accordance with Vancity’s existing treasury and liquidity management procedures. This is in line with market practice. 

REPORTING

Vancity intends to publicly report on the allocation of proceeds on its website on an annual basis until full allocation. Vancity is also committed to reporting on relevant environmental and social impact metrics. Sustainalytics views Vancity’s allocation and impact reporting commitments as aligned with market practice. 

Alignment of Deposits with Market Expectations 

The Vancity Sustainability Issuance Framework includes deposits as an eligible financial product. Sustainalytics is of the opinion that the principles of impact and transparency that underlie the sustainable investment industry, as well as many of its norms and standards, are applicable to deposits, and that Vancity’s internal processes and the use of funds aligns with those principles.