Second-Party Opinion Download

Sustainalytics is of the opinion that the Westpac Social Tailored Deposit Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2023. This assessment is based on the following:

USE OF PROCEEDS:
The eligible categories for the use of proceeds – Access to Essential Services, Affordable Housing and Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically, SDGs 3, 4, 8, 9 and 11.

PROJECT EVALUATION AND SELECTION:
The Westpac Institutional Bank – Corporate and Institutional Banking, Sustainable Finance Framework Working Group and Financial Markets Balance Sheet and Product teams will be responsible for the evaluation and selection of projects and assets in line with the Framework’s eligibility criteria. Westpac has an ESG risk management process in place to identify environmental and social risks associated with the eligible activities. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS:
Westpac’s Sustainable Finance Framework Working Group and Financial Markets Balance Sheet and Product teams will be responsible for the management of proceeds using a portfolio approach and will track their allocation using an internal booking system and dashboard. Westpac has communicated that proceeds will be fully allocated within a month of social tailored deposits raised on a notional basis. Pending full allocation, Westpac will temporarily invest the proceeds in cash, cash equivalents or other liquid marketable instruments. This is in line with market practice.

REPORTING:
Westpac commits to report on the allocation of proceeds and eligibility of assets on its website on an annual basis while the deposits are outstanding. Allocation reporting will cover the allocation of social tailored deposits to eligible social assets by category, including information on the financed assets, geographic locations and asset values. Sustainalytics notes that Westpac will not produce specific impact reporting relating to the individual assets but intends to assess the social impact of the social tailored deposits in the context of Westpac’s wider sustainability objectives at the group level. Sustainalytics considers impact reporting to be an essential element that ensure transparency within the sustainable finance market.