Project Details
Project
Burberry Sustainability Bond Framework Second-Party Opinion
Client
Burberry Group PLC
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.K.
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the Burberry Sustainability Bond Framework is credible and impactful and aligns with the Green Bond Principles 2018 (GBP), the Social Bond Principles 2020 (SBP), and the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds: (i) Green Buildings, (ii) Environmentally Sustainable Management of Living Natural Resources, and Land Use, and (iii) Eco-efficient and/or Circular Economy Adapted Products, Production Technologies, and Processes are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDG 11,12, and 15.
PROJECT EVALUATION/SELECTION
Burberry Group plc’s internal process in evaluating and selecting projects is managed by the Sustainability Steering Committee, which is chaired by the CEO. The Committee is responsible for ensuring the selected projects are aligned with internal policies and the eligibility criteria for the use of proceeds. The Committee will also approve the appropriate changes to the Eligible Sustainable Projects pool if a project no longer meets the eligibility criteria. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Burberry Group plc’s processes for management of proceeds is handled by the Treasury and Finance teams. Burberry will track allocations of proceeds in a bespoke register. Unallocated proceeds will be held in cash, cash equivalents and/or invested in other short-term liquid instruments on a temporary basis in accordance with the Company’s internal policies. Based on these elements, Sustainalytics considers this process to be in line with market practice.
REPORTING
Burberry intends to report allocation of proceeds on its website, on an annual basis, until full allocation. The allocation reporting will include the total amount of proceeds allocated, and the balance of unallocated proceeds. In addition, Burberry plans to report on relevant sustainability impact metrics where feasible. Sustainalytics views Burberry’s allocation and impact reporting as aligned with market practice.