Project Details
Project
JSC Russian Railways Social Finance Framework Second-Party Opinion (This opinion is no longer valid since March 14th 2022, given that the company is subject to sanctions as a result of the situation in Ukraine)
Client
JSC Russian Railways
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Russia
Evaluation Date
Nov 2020
Evaluation Summary
Sustainalytics is of the opinion that the Joint Stock Company (JSC) Russian Railways Social Finance Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Affordable Transport Infrastructure and Transport Accessibility, Health and Healthcare, Education and Other Social Projects – are aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically Goals 1, 3, 4, 9 and 11.
PROJECT EVALUATION/SELECTION
Joint Stock Company Russian Railways’ Corporate Finance Department will be responsible for the project evaluation and selection process and will work in collaboration with several internal departments to ensure compliance with the Framework. As part of this process, eligible projects will be tracked and recorded for the purposes of allocation. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Joint Stock Company Russian Railways will track investments in selected projects using a social financing register. An amount equal to the net proceeds will be used to finance and refinance eligible social projects. Pending full allocation, unallocated proceeds will be invested in accordance with the Company’s cash management policies. This is in line with market practice.
REPORTING
Joint Stock Company Russian Railways intends to provide allocation and impact reporting on its website on an annual basis, until full allocation. Allocation reporting will be executed at the category level and will include example case studies and details of Eligible Social Projects, while impact reporting will draw on several qualitative impact metrics. Sustainalytics views Joint Stock Company Russian Railways’ allocation and impact reporting as aligned with market practice.