Project Details
Project
CIBC Sustainability Issuance Framework Second-Party Opinion (2021)
Client
CIBC
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Canada
Evaluation Date
Sep 2021
Evaluation Summary
Sustainalytics is of the opinion that CIBC's Sustainability Issuance Framework is credible and impactful and bonds, notes, and commercial paper align with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021 (the “Use of Proceeds Principles”). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by both the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that financing or lending in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3 ,4, 5, 6, 7, 10, 11, 12, 14, 15.
PROJECT EVALUATION / SELECTION
CIBC's Sustainability Working Group, comprised of members from the Treasury, Finance, Environmental Risk Management, Enterprise ESG, Commercial Banking and Capital Markets teams, is responsible for the selection and approval of all eligible projects. CIBC's environmental and social risk management systems are applicable for all allocation decisions in the Framework. Sustainalytics considers the risk management systems to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
CIBC will track allocations internally and intends to fully allocate within 18 months of each issuance following a portfolio approach. Pending allocation, the proceeds will be deposited in CIBC's General Fund accounts and managed per existing liquidity policies. This is in line with market practice.
REPORTING
CIBC intends to report on the allocation of proceeds on its website and on an annual basis until the maturity of the respective issuance. In addition, CIBC is committed to reporting on relevant impact metrics. Sustainalytics views CIBC's allocation and impact reporting as aligned with market practice.
Alignment of Deposits and GICs with Market Expectations
The CIBC Sustainability Issuance Framework includes deposits, certificates, Guaranteed Investment Certificates (GICs), and market-linked GICs as eligible financial products. Sustainalytics is of the opinion that the principles of impact and transparency that underlie the sustainable investment industry, as well as many of its norms and standards, are applicable to deposits and GICs, and that CIBC’s internal processes and the use of funds aligns with those principles.