Project Details
Project
Vienna Insurance Group Sustainability Bond Framework Second Party Opinion (2020)
Client
Vienna Insurance Group
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Austria
Evaluation Date
Dec 2020
Evaluation Summary
Sustainalytics is of the opinion that the Vienna Insurance Group Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Clean Transportation, Energy Efficiency, Affordable Housing, and Access to Essential Services – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 7, and 11.
PROJECT EVALUATION / SELECTION
VIG’s internal process in evaluating and selecting projects is managed by the Sustainability Bond Committee (SBC), which is comprised of members from the Corporate Social Responsibility, Asset Management, Treasury, and Compliance departments, and the ESG Project Leader and Manager of Proceeds. In consultation with SBC the CSR officer in charge has overall responsibility for project selection based on alignment with the Framework’s eligibility criteria. Based on these elements, Sustainalytics considers this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
VIG’s process for management of proceeds is overseen by the Group’s Asset Management. Proceeds will be managed using a portfolio approach. VIG’s SBC will establish an internal process to track allocations to the bond proceeds. Should any proceeds remain unallocated, they will be held in accordance with the relevant internal treasury policies, in cash, cash equivalents or similar instruments. Based on these elements, Sustainalytics considers this process to be in line with market practice.
REPORTING
VIG intends to report on the allocation of proceeds on its website on an annual basis, until full allocation of the bond proceeds. The allocation reporting will include details such as total allocation per category, list of eligible assets in the Eligible Project portfolio, including a description of the projects and allocated amounts, the proportion of refinancing vs. financing, and balance of unallocated amounts. In addition, VIG intends to report on relevant impact indicators. Based on these elements, Sustainalytics considers this process to be in line with market practice.