Project Details
Project
Volksbank Wien Sustainability Bond Second-Party Opinion (2024)
Client
Volksbank Wien AG
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Clean transport; Sustainable agriculture; Access to essential services; Affordable housing;
Location
Austria
Evaluation Date
Feb 2024
Evaluation Summary
Sustainalytics is of the opinion that the Volksbank Wien Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, Sustainable Agriculture, Access to Essential Services, Affordable Housing and Inclusive Finance – 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 or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 7, 9, 10, 11 and 15.
PROJECT EVALUATION AND SELECTION
Volksbank Wien’s Sustainability Bond Committee is responsible for the overall project evaluation and selection process. Volksbank Wien has established internal processes to identify and mitigate material environmental and social risks associated with the eligible projects. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Volksbank Wien will track proceeds using a Sustainability Bond Register. Volksbank Wien's Sustainable Bond Team will manage proceeds on a portfolio basis. Volksbank Wien is committed to allocating bond proceeds within 36 months from issuance. Unallocated proceeds will be held or invested in cash or cash equivalents. This is in line with market practice.
REPORTING
Volksbank Wien commits to report on allocation of proceeds and the relevant impacts on its website on an annual basis until full allocation. Allocation reporting will include amounts outstanding, allocated and unallocated amounts, and indicators, such as total amount of bonds issued, and the amount and number of eligible loans. Sustainalytics views Volksbank Wien's allocation and impact reporting as aligned with market practice.