Second-Party Opinion Download

Sustainalytics is of the opinion that the Gunma Bank, Ltd. (“the Gunma Bank” or “the Bank”) Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds, 1) renewable energy, 2) energy efficiency, 3) clean transportation, and 4) green buildings are aligned with those recognized by the GBP. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals 7, 9 and 11.

PROJECT EVALUATION/SELECTION

Eligible projects are selected by the Business Management Office of Corporate Planning Department (“Business Management Office”) based on the eligibility criteria which are set out by the Business Management Office and the Business Planning Group of the Corporate Planning Department (“Business Planning Group”). Sustainalytics considers that the Gunma Bank’s evaluation and selection process is in line with market best practice.

MANAGEMENT OF PROCEEDS

The Business Management Office ensures that the amount of green bond issuance does not exceed the total amount of eligible assets by tracking the proceeds of the green bond annually using an internal filing system. Unallocated funds will be managed as cash or cash equivalents. The Gunma Bank’s process for management of proceeds is in line with market practice.

REPORTING

The Gunma Bank intends to disclose information on proceeds allocation and environmental impact on its website annually until the proceeds are fully allocated. Allocation reporting covers items such as the amount of allocated proceeds, the amount of unallocated proceeds, and balance of its green bonds and impact reporting covers metrics such as CO2 reduction for each category and types and levels of third-party certification. In Sustainalytics’ view, the Gunma Bank’s reporting is in line with market practice.