Project Details
Project
DNB Boligkreditt Green Bond Framework Second-Party Opinion
Client
DNB Boligkreditt
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Norway
Evaluation Date
May 2018
Evaluation Summary
Sustainalytics is of the opinion that the DNB Boligkreditt Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2017. This opinion is based on:
USE OF PROCEEDS
The eligible category for the use of proceeds (mortgages for energy efficient residential buildings) is aligned with those recognized by the Green Bond Principles (green buildings). Sustainalytics views this category as impactful and contributing to the decarbonization of Norway’s residential market.
PROJECT EVALUATION/SELECTION
The selection of eligible mortgages for energy efficient buildings will be completed by DNB Boligkreditt based on information provided by third-party Eiendomsverdi that will facilitate the matching of mortgages with the eligibility criteria. DNB’s dedicated Green Bond Committee, composed of members from group treasury, CSR department and the Sustainable Finance Department of DNB Markets, will be accountable for reviewing Eligible Green Loans within a green mortgage register that can be drawn upon for inclusion in the “Eligible Green Loans Portfolio”. DNB Boligkreditt’s approach to the process for project evaluation and selection is seen as aligned with current market practices.
MANAGEMENT OF PROCEEDS
DNB Boligkreditt will manage proceeds through a portfolio approach, in which all loans meet the eligibility criteria. The unallocated proceeds will be held or invested at DNB Boligkreditt’s discretion in its liquidity portfolio in money market instruments, according to the company’s treasury policies. Sustainalytics assesses this approach as being in line with market practices.
REPORTING
DNB Boligkreditt intends to issue reporting on allocation, providing the market with information on the size of the identified Eligible Green Loans Portfolio and the balance of unallocated proceeds on its website on an annual basis. With regards to impact reporting, DNB Boligkreditt committed to provide data on the estimated ex-ante annual energy consumption or savings and reduction in GHG emissions or tons of CO2 equivalent avoided. In Sustainalytics’ view, reporting on these metrics is in line with market practices.