Project Details
Project
Junta de Andalucía Sustainable Finance Framework Second-Party Opinion
Client
Junta de Andalucía
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Spain
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the Junta de Andalucía Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, and Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds — Access to Essential Services: Education and Healthcare, SocioEconomic Advancement, Affordable Housing, Employment Generation and Support to SMEs, Renewable Energy and Energy Efficiency, Clean Transportation, Environmental and Biodiversity Conservation, Sustainable Water and Wastewater Management, and Pollution Prevention and Control and Climate Change Mitigation — are aligned with those recognized by both the Green Bond Principles, Social Bond Principles, and Green Loan Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts in Andalusia and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 6, 7, 8, 10, 11, 12, and15.
PROJECT EVALUATION/SELECTION
Junta de Andalucía has established a Sustainable Finance Committee (SFC) to select and evaluate eligible programmes. The SFC is comprised of members from the General Secretary of Finance, the General Directorate of Financial Policy and Treasury, and the General Directorate of Budgets. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Net proceeds of the issuances will be allocated towards the budgetary programmes in the general budget of Junta de Andalucía and earmarked for allocation to eligible social and environmental programmes. This process will be tracked using internal tracking systems and monitored by the Sustainable Finance Committee. Junta de Andalucía intends to fully allocate the net proceeds to existing programmes within the first year of issuance. This is in line with market practice.
REPORTING
Junta de Andalucía intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount allocated to eligible programmes and eligible categories. In addition, Junta de Andalucía is committed to reporting on relevant impact metrics. Sustainalytics views Junta de Andalucía’s allocation and impact reporting as aligned with market practice.