Project Details
Project
Heungkuk Life Sustainable Development Bond Framework Second-Party Opinion
Client
Heungkuk Life Insurance Co., Ltd.
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Apr 2019
Evaluation Summary
Sustainalytics is of the opinion that the Heungkuk Life Insurance Co., Ltd. Sustainable Development Bond Framework is credible and impactful, and aligns with the Green Bond Principles 2018, the Social Bond Principles 2018 and the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible use of proceeds categories , (i) renewable energy, (ii) sustainable water and waste water management, (iii) pollution prevention and control, (iv) clean transportation, (v) access to essential services, and (vi) affordable housing, are aligned with those recognized by the Green Bond Principles 2018, Social Bond Principles 2018 and Sustainability Bond Guidelines 2018. Sustainalytics considers that financing these eligible projects have positive environmental or social impacts and advance the UN Sustainable Development Goals 3, 4, 6, 7 and 11.
PROJECT EVALUATION/SELECTION
Sustainalytics views Heungkuk Life’s internal process of evaluating and selecting projects are in line with market practice, considering that the investment committee composed of the CIO, Head of Risk Management Team, Head of Financial Investment Team, and Head of Asset Planning Team, will make the final decision after the investment team’s evaluation and selection.
MANAGEMENT OF PROCEEDS
Heungkuk Life’s processes for management of proceeds are in line with market practice. The General Management Division and Asset Management Division will track the proceeds using internal tracking systems. Pending full allocation, the unallocated net proceeds will be held or invested in cash, cash equivalents or be used to re-pay commercial paper.
REPORTING
Heungkuk Life is committed to disclosing an annual allocation report on its website. The report will include amounts allocated by each eligible project category, unallocated amounts as well as case studies of selected projects. Where feasible, Sustainalytics encourages Heungkuk Life to commit to reporting quantitative environmental and social key performance indicators in impact reporting, to further strengthen the framework.