Project Details
Project
Banca Popolare di Sondrio Green Bond Framework Second-Party Opinion (2021)
Client
Banca Popolare di Sondrio
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Italy
Evaluation Date
Jul 2021
Evaluation Summary
Sustainalytics is of the opinion that the Banca Popolare di Sondrio Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 6, 7, 9, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
BP Sondrio’s internal process of evaluating and selecting projects is managed by its Sustainability Committee, which has representatives from the Board, Business, Risk, Finance and Lending, Logistic and Operation, Planning and Investor Relations, Personal and Organizational models, and Sustainability departments. The Sustainability Committee will meet at least quarterly and on ad-hoc basis to ensure that allocation is in line with the eligibility criteria. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
BP Sondrio’s Finance Department (Funding and Collateral Operations) will be responsible for the allocation of proceeds and tracking the process using an internal system. BP Sondrio intends to reach full allocation within 36 months of issuance. Pending allocation, unallocated proceeds will be invested in cash or cash equivalents or other liquid marketable instruments in line with the Bank’s liquidity management policies, and to the extent possible in Green, Social and Sustainability Bonds. Sustainalytics considers this to be in line with market practice.
REPORTING
BP Sondrio intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible projects, share of financing vs refinancing, amount of unallocated proceeds, distribution of total amount of eligible projects per category and geographical distribution of eligible projects. In addition, the Bank is committed to reporting on relevant impact metrics. Sustainalytics views BP Sondrio ’s allocation and impact reporting as aligned with market practice.