Project Details
Project
SID Bank's Green Bond Framework Second-Party Opinion
Client
SID Bank
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Slovenia
Evaluation Date
Nov 2018
Evaluation Summary
Sustainalytics is of the opinion that the SID Bank Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, (i) Renewable Energy, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Environmentally Sustainable Management of Living Natural Resources and Land Use, (v) Clean Transportation, (vi) Sustainable Water and Wastewater Management, (vii) Eco-Efficient and/or Circular Economy Adapted Products, Production Technologies and Processes, and (viii) Green Buildings are aligned with those recognized by the Green Bond Principles. Sustainalytics considers the eligible activities to contribute to GHG emissions and waste reduction as well as improved water quality in Slovenia and contribute to the Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
SID Bank’s internal process for evaluation and selection of projects is aligned with market practice. SID Bank’s Credit Committee is responsible for evaluating and selecting the eligible loans. The committee will conduct a review of the projects at least annually to ensure eligibility.
MANAGEMENT OF PROCEEDS
SID Bank’s processes for management of proceeds is aligned with market practice. SID Bank will establish a dedicated green bond portfolio for the eligible projects to which the green bond proceeds are allocated. Unallocated proceeds will be either held or invested in the bank’s liquidity portfolio.
REPORTING
SID Bank commits to report to investors annually on the allocation of proceeds in a Green Bond Report, which will include the amount of both allocated and unallocated proceeds. In addition, SID Bank has committed to report annually on impact indicators, such as CO2 emissions avoided, amount of waste reduced, reduction in water consumption, energy savings and renewable energy produced. This is considered to be aligned with market practice by Sustainalytics.