Project Details
Project
Proximus Sustainable Finance Framework Second-Party Opinion (2021)
Client
Proximus
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Belgium
Evaluation Date
May 2021
Evaluation Summary
Sustainalytics is of the opinion that the Proximus Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds —Energy Efficiency, Renewable Energy, Clean Transportation, Green Buildings, Eco-efficient and/or circular economy adapted products, production technologies and processes, and Access to Essential Services: Digital and Social Inclusion — are aligned with those recognized by the Green Bond Principles 2018, Social Bond Principles 2020, Green Loan Principles 2021, and Social Loan Principles 2021. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 4, 7, 9, 11, and 12.
PROJECT EVALUATION / SELECTION
Proximus’ Sustainable Finance Committee (“the Committee”) comprised of representatives of the Sustainability & Reputation team and senior officials within Proximus’ Group Finance and Funding Team will be responsible for project evaluation and selection. The Committee will meet annually to ensure project selection is in line with the Framework’s eligibility criteria and manage any future updates to the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Proximus’ Group Finance will be responsible for the management of proceeds. Proximus will manage proceeds using a portfolio approach, in which it will strive to maintain a level of allocation that matches or exceeds the balance of net proceeds of outstanding finance instruments. Proximus intends to reach full allocation within 36 months of issuance. Pending allocation, unallocated proceeds will be held in Proximus’ treasury liquid portfolio in cash or cash equivalents or money market funds. This is in line with market practice.
REPORTING
Proximus intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount of finance instrument outstanding, the amount of proceeds allocated to eligible projects, the balance of unallocated proceeds, and the share of financing vs refinancing. In addition, Proximus is committed to reporting on relevant impact metrics. Sustainalytics views Proximus’ allocation and impact reporting as aligned with market practice.