Project Details
Project
BN Bank Green Bond Framework Second-Party Opinion (2022)
Client
BN Bank ASA
Project Type
Green Bond/Loan; EU Taxonomy Assessment;
Industry Group
-
Use of Proceeds
-
Location
Norway
Evaluation Date
May 2022
Evaluation Summary
Sustainalytics is of the opinion that the BN Bank 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
The eligible category for the use of proceeds - Green Buildings - is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category are expected to lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 11.
PROJECT EVALUATION / SELECTION
BN Bank has established a Green Bond Committee (GBC) for selection and final approval of green loans. The committee consists of the CFO, Deputy CEO, Head of Treasury, Executive Director Retail Banking and the Sustainability Officer. The Bank has in place internal policies to ensure mitigation of the environment and social risks associated with the assets that will be financed under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
BN Bank’s Green Bond Committee will be responsible for management of proceeds on a portfolio basis and will track the allocation of proceeds using a green register. Pending allocation, proceeds will be invested temporarily in the Bank’s liquidity reserve. BN Bank intends to allocate proceeds within 12 months of issuance. This is in line with market practice.
REPORTING
BN Bank intends to report on allocation of proceeds on its website once per green bond issuance and renewed annually until full allocation. Allocation reports will include the amount of green bonds issued, share of proceeds used for financing versus refinancing and share of unallocated proceeds. In addition, BN Bank is committed to reporting on relevant impact metrics. Sustainalytics views BN Bank’s allocation and impact reporting as aligned with market practice.
Alignment with the EU Taxonomy
Sustainalytics has assessed BN Bank ASA’s Green Bond Framework for alignment with the EU Taxonomy and is of the opinion that all of the Framework’s eligibility criteria (which map to three EU activities) align with the applicable Technical Screening Criteria (TSC) in the EU Taxonomy. The Framework aligns with seven of the Do No Significant Harm (DNSH) criteria of the EU Taxonomy, and partially aligns with another three of the 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.