Project Details
Project
Yapı Kredi Sustainable Finance Framework Second-Party Opinion (2024)
Client
Yapı ve Kredi Bankası A.Ş
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Clean transport; Natural resources/land use management; Conservation; Water/waste water management; Pollution prevention and control; Circular economy adapted products, production technologies and processes; Eco-efficient products; Climate change adaptation; Access to essential services; Health; Education; Food security; Employment generation and Socio-economic empowerment; Affordable housing; Affordable basic infrastructure;
Location
Türkiye
Evaluation Date
Jul 2024
Evaluation Summary
Evaluation Summary
Sustainalytics is of the opinion that the Yapı Kredi Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan 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 1, 2, 3, 4, 6, 7, 9, 11, 12, 13 and 15.
PROJECT EVALUATION AND SELECTION
Yapı Kredi’s Sustainable Finance Working Group will be responsible for the review and approval of eligible assets in accordance with the eligibility criteria and the Yapı Kredi’s internal policies. Sustainalytics considers this process in line with market practice. Yapı Kredi has an Environmental and Social Risk Assessment System applicable to all allocation decisions made under the Framework. Sustainalytics considers this risk management system to be adequate, and the project and evaluation process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds will be managed by the Treasury and Sales Departments using a portfolio approach. When necessary, existing assets will be substituted with new eligible assets in the portfolio. Pending allocation, proceeds will be temporarily held in cash or cash equivalents or other liquid marketable instruments. This process is in line with market practice.
REPORTING
Yapı Kredi commits to report on allocation on its website annually until full allocation or until maturity for revolving credit facilities. Allocation reporting will include: i) total amount of sustainable finance instruments outstanding; ii) amount of proceeds allocated to eligible loans; iii) balance of unallocated proceeds; iv) share of financing or refinancing; and where possible v) geographical distribution of the projects. In addition, Yapı Kredi commits to reporting on relevant impact metrics, where possible. The process of allocation and impact reporting is aligned with market practice.
Alignment of Deposits with Market Expectations
The Yapı Kredi Sustainable Finance 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 Yapı Kredi’s internal processes and the use of funds aligns with those principles.