Project Details
Project
AIB Green Bond Framework Second-Party Opinion (2023)
Client
AIB Group PLC
Project Type
Green Bond/Loan; EU Taxonomy Assessment;
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Clean transport;
Location
Ireland
Evaluation Date
Aug 2023
Evaluation Summary
Sustainalytics is of the opinion that the AIB Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that the provision of financing in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.
PROJECT EVALUATION/ SELECTION
AIB’s Group Sustainability Committee will be responsible for overseeing the process of selecting eligible green loans according to the criteria set in the Framework prepared by the AIB ESG Bond Working Group. AIB has a dedicated environmental and social risk assessment and mitigation process that is applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
AIB intends to manage the net proceeds in a portfolio approach and allocate the proceeds from the green bonds to the Eligible Green Loan Portfolio. Pending allocation, AIB will hold or invest in its treasury liquidity portfolio in cash or other short term and liquid instruments or pay back a portion of its outstanding indebtedness. AIB intends to allocate the proceeds at issuance. Sustainalytics considers this to be in line with market practice.
REPORTING
AIB intends to report on the allocation of proceeds to the Eligible Green Loan Portfolio on an annual basis, to be renewed every year until maturity of the instruments or full allocation. In addition, where feasible, AIB intends to report on the impact of the Eligible Green Loan Portfolio at least at category level, including relevant quantitative metrics, calculated by third-party consultants. Sustainalytics views AIB’s allocation and impact reporting as aligned with market practice.
EU TAXONOMY
Sustainalytics has assessed AIB’s Green Bond Framework for alignment with the EU Taxonomy. The Framework’s three use of proceeds categories map to 12 EU activities. Sustainalytics is of the opinion that nine activities align and three partially align with the applicable technical screening criteria for substantial contribution (SC) to an environmental objective of the EU Taxonomy. Eight activities align and four partially align with the relevant “do no significant harm” (DNSH) criteria. Sustainalytics is also of the opinion that the activities and projects to be financed under the Framework will be carried out in alignment with the EU Taxonomy’s Minimum Safeguards.