Project Details
Project
Caja Rural de Navarra Sustainability Bond Framework Second-Party Opinion (2021)
Client
Caja Rural de Navarra
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Sustainable agriculture; Renewable energy; Energy efficiency; Sustainable forestry; Affordable housing; Education;
Location
Spain
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that the Caja Rural de Navarra Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Sustainable Agriculture, Renewable Energy, Energy Efficiency, Sustainable Forest Management, Waste Management, Social Housing, Social Inclusion, Education, Economic Inclusion – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 4, 7, 8, 10, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
Caja Rural de Navarra’s internal process in evaluating and selecting projects is managed by the Sustainability Committee, which will consist of representatives from the Risk Management, Capital Markets, Human Resources, Regulatory Compliance, Social Action and Marketing departments. CRN has in place an environmental and social risk management process that is applicable to all allocation decisions made under the Framework. Sustainalytics considers the environmental and social risk management process to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Caja Rural de Navarra’s processes for management of proceeds is handled by the Sustainability Committee. CRN expects to allocate all proceeds at issuance to existing loans. In the event of unallocated funds, CRN will invest unallocated proceeds in its liquidity book, which will mainly be invested in OECD sovereigns and sub-sovereigns. This is in line with market practice.
REPORTING
Caja Rural de Navarra intends to report on allocation of proceeds on its website, on an annual basis, until full allocation. Allocation reporting will disclose outstanding amount of its loan book, outstanding number of loans and number of borrowers. In addition, Caja Rural de Navarra is committed to reporting on relevant impact metrics. Both the allocation of proceeds and impact reporting will be third-party verified. Sustainalytics views Caja Rural de Navarra’s allocation and impact reporting as aligned with market practice.