Project Details
Project
Varbergs Sparbank Green Bond Framework Second-Party Opinion (2024)
Client
Varbergs Sparbank
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Clean transport; Energy efficiency; Renewable energy; Natural resources/land use management; Climate change adaptation;
Location
Sweden
Evaluation Date
Sep 2024
Evaluation Summary
Sustainalytics is of the opinion that the Varbergs Sparbank Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds– Green Buildings, Clean Transportation, Energy Efficiency, Renewable Energy, Environmentally Sustainable Management of Living Natural Resources and Land Use, Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11, 13 and 15.
PROJECT EVALUATION AND SELECTION
Varbergs Sparbank’s Green Bond Committee will select eligible projects from a list of potential projects identified by the Bank’s business units, based on the Framework criteria. Varbergs Sparbank has environmental and social risk management policies and processes which apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Varbergs Sparbank will manage proceeds through a green register on a portfolio basis, and the Bank’s finance department will be responsible for monitoring it. Varbergs Sparbank intends to allocate proceeds within 12 months from issuance. Pending full allocation, unallocated proceeds will be invested in sovereign bonds, municipal bonds or covered bonds in accordance with Varbergs Sparbank’s policy on liquidity reserves. This is in line with market practice.
REPORTING
Varbergs Sparbank commits to report on allocation and impact on an annual basis in its Green Bond Impact Report, which will be made available on the Bank’s website until full allocation or for as long as any bonds remain outstanding in case of any material developments. Sustainalytics views Varbergs Sparbank’s allocation and impact reporting as aligned with market practice.