Project Details
Project
Bank of the Philippine Islands Green Finance Framework Second-Party Opinion
Client
Bank of the Philippine Islands
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Philippines
Evaluation Date
May 2019
Evaluation Summary
Sustainalytics is of the opinion that the Bank of the Philippine Islands Green Finance Framework is credible and impactful and aligns with the components of the Green Bond Principles 2018, the Green Loan Principles and the ASEAN Green Bond Standards. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Sustainable Water & Wastewater Management, (iv) Pollution Prevention & Control, (v) Green Buildings are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that the Eligible Green Projects will contribute to the reduction of the Philippines’ environmental footprint and advance the UN Sustainable Development Goals 6, 7, 9, 11 and 12.
PROJECT EVALUATION/SELECTION
BPI’s Sustainable Energy Finance and Specialized Lending Unit Team (together “SEF/SLT”) are responsible for the initial project selection. All selected projects are to be approved by the SEF/SLT Head and Vice Chairman of the Green Finance Committee (“GFC”), while the latter committee convenes semi-annually in order to evaluate alignment with eligibility criteria. This process is in line with market practices.
MANAGEMENT OF PROCEEDS
BPI established a register to track and monitor the allocation and use of proceeds for the green bond transactions. Pending full allocation, the unallocated proceeds will be managed in accordance with BPI’s internal liquidity management policies. Sustainalytics views this process as aligned with market practices.
REPORTING
BPI has committed to disclose an annual allocation report as part of BPI’s Integrated Annual and Sustainability Report. The (i) allocation report will include the list of Eligible Green Projects, allocated amounts and the remaining unallocated proceeds. Where relevant and feasible, BPI will disclose (ii) impact reporting on the environmental outcomes of Eligible Green Projects through a series of KPIs tailored for each Eligible Green Project Category, as part of the same BPI Integrated Annual and Sustainability Report. Sustainalytics views BPI’s allocation reporting commitments to be in line with market practices and encourages BPI to disclose impact reporting on an annual basis.