Project Details
Project
Ziraat Bank Green, Social and Sustainable Finance Framework Second-Party Opinion
Client
Ziraat Bank
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Türkiye
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the Ziraat Bank Green, Social and Sustainable Finance Framework aligns with the Green Bond Principles (GBP) 2018, Sustainability Bond Guidelines 2018, Social Bond Principles (SBP) 2020 and the Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Green Buildings, (iii) Clean Transportation, (iv) Energy Efficiency, (v) Environmentally Sustainable Management of Living Natural Resources and Land Use, (vi) Sustainable Water and Wastewater Management, (vii) Pollution Prevention and Control, (viii) Eco-Efficient and/or Circular Economy Adapted Products, Production Technologies and Processes, (ix) Employment Generation, (x) Access to Essential Services and (xi) Affordable Housing - are aligned with those recognized by both the GBP and SBP. Sustainalytics considers that the eligible categories generate positive impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 7, 8, 11, 12 and 15.
PROJECT EVALUATION/SELECTION
Ziraat Bank’s internal process for evaluating and selecting loans is managed by the Sustainable Finance Working Group (the “Group”). Eligible loans must comply with Eligibility Criteria. In addition, Ziraat Bank’s internal policy framework ensures minimum environmental and social requirements. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Ziraat Bank’s management of proceeds is handled by the Sustainable Finance Working Group. Proceeds of the Sustainable Finance Instruments issued under the Framework will be managed in a portfolio approach. Unallocated proceeds will be held temporarily in Ziraat Bank’s treasury liquidity portfolio, in cash or other short term liquid instruments. This process is in line with market practice.
REPORTING
Ziraat Bank intends to report on the allocation of the net proceeds on its website on an annual basis until full allocation, on a portfolio basis. The allocation reporting will include the size of the identified Eligible Sustainable Finance Portfolio, the total amount of proceeds allocated, the balance (if any) of unallocated proceeds, the share of new financing and refinancing and the geographic location of the assets at the country level. In addition, Ziraat Bank is committed to reporting on relevant impact metrics. Sustainalytics views Ziraat Bank’s allocation and impact reporting as aligned with market practice.