Project Details
Project
Piraeus Group Green Bond Framework Second-Party Opinion (2021)
Client
Piraeus Group
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency;
Location
Greece
Evaluation Date
Sep 2021
Evaluation Summary
Sustainalytics is of the opinion that the Piraeus Group Green Bond Framework is credible, impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories – Renewable Energy, Green Buildings and Energy Efficiency – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to contribute to a low-carbon economy in Greece and advance the Sustainable Development Goals, specifically SDGs 7 and 11.
PROJECT EVALUATION / SELECTION
Piraeus Group’s Green Bond Committee (GBC) will oversee the internal process for evaluating and selecting projects. The Green Bond Committee is comprised of representatives from the following department at Piraeus Group: Finance, Treasury, Sustainable Banking, Lending and Risk Management, ESG and Investor Relations. The GBC will be supported by the Green Bond Working Group in this process. Piraeus Group's Environmental and Social Management System applies to all allocation decisions made under the Framework. Sustainalytics considers the risk management system to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Piraeus Group’s Green Bond Working Group will oversee the management of proceeds. The allocation process will be tracked using a green bond register. Pending allocation, unallocated proceeds will be held in accordance with the Piraeus Group’s usual liquidity management policy, including cash, cash equivalent and other short-term instruments. Piraeus Group intends to reach full allocation within 24 months of each issuance. This is in line with market practice.
REPORTING
Piraeus Group intends to report on the allocation and impact of bond proceeds on its website on an annual basis until full allocation. The allocation reporting will include the amounts allocated to eligible projects and categories, the balance of unallocated amounts, and the share of financing versus refinancing. In addition, Piraeus Group is committed to reporting on relevant impact metrics. Sustainalytics views Piraeus Group’s allocation and impact reporting as aligned with market practice.