Project Details
Project
Flanders Sustainability Bond Second-Party Opinion
Client
Flemish Community
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Belgium
Evaluation Date
Oct 2018
Evaluation Summary
Sustainalytics is of the opinion that the Flanders’ Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers the financing of (i) energy efficiency in buildings, (ii) affordable housing, (iii) access to education, and (iv) pollution prevention, and control (including circular economy) to contribute to GHG and waste reduction, increased access to affordable housing and primary and secondary school for underserved populations. Additionally, the proceeds advance the UN Sustainable Development Goals 4, 7, 11 and 12.
PROJECT EVALUATION/SELECTION
Flanders’ internal process in evaluating and selecting projects is aligned with market standards. A dedicated Sustainability Bond Committee is responsible for project evaluation and selection, comprised of members of the departments of Finance and Budget, VMSW (social housing), Agion (Agency for School Infrastructure), Vlaio (Agency for Innovation and Entrepreneurship), VEA (Flemish Energy Agency), Circular Flanders and the department of Environment.
MANAGEMENT OF PROCEEDS
Flanders’ processes for management of proceeds is aligned with market standards, including a dedicated register to monitor the allocation of proceeds. Unallocated proceeds will be managed within the division of Financial Operations of the Flemish department of Finance and Budget treasury liquidity account in accordance with the region’s regulatory framework.
REPORTING
Flanders’ intends to report allocation of proceeds on an annual basis on its website, including allocation to each eligible category, allocated and unallocated amounts as well as examples of projects if possible. In addition, Flanders is committed to reporting annually on impact indicators, including the number of beneficiary households from the energy loan, the energy fund, from rent subsidies and social mortgage loans and number of student beneficiaries, energy savings and CO2 avoided. In Sustainalytics’ view, reporting on these metrics is in line with market practice.