Second-Party Opinion Download

Sustainalytics is of the opinion that the SpareBank 1 SMN 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 (“Green Buildings” and “Eco-efficient and/ or circular economy adapted products, production technologies and processes”) are aligned with those recognized by the Green Bond Principles 2018 as categories with clear environmental benefits. Sustainalytics considers that the use of proceeds, which will finance an Eligible Green Loan Portfolio, will contribute to energy savings in the hotel and restaurant, office, retail, industrial and commercial real estate market in Norway, and to a shift toward more sustainable and climate-friendly products and business operations.

PROJECT EVALUATION/SELECTION

SpareBank 1 SMN has established a Green Bond Committee which is in charge of the evaluation and selection of Eligible Green Loans. SpareBank 1 SMN’s project selection is based on third-party consultations as well as thirdparty certifications. Sustainalytics considers this process to be in line with market practices.

MANAGEMENT OF PROCEEDS

SpareBank 1 SMN will manage the green bond proceeds using a portfolio approach and maintain a register of new and existing Eligible Green Loans. The balance of unallocated bond proceeds will be held or invested at the company’s discretion in its liquidity portfolio in money market instruments. Sustainalytics considers this process to be in line with market practice.

REPORTING

SpareBank 1 SMN commits to publishing an allocation and impact report annually until bond proceeds have been fully allocated. The allocation report will comprise, on a portfolio basis, relevant transaction information such as the total amount of investments and expenditures in the Eligible Green Loan Portfolio and the balance of the unallocated proceeds. Where feasible, SpareBank 1 SMN will report on key performance indicators, such as estimated ex ante annual energy consumption in kWh/m² or energy savings in MWh. It will also report, where available, key impact indicators measured and reported by the certification schemes (at an aggregate level for all certified companies) that are included in the Framework’s eligibility criteria, as well as the proportion of revenue from SMEs’ certified products, services and processes and the corresponding proportion of eligible loans. Sustainalytics views the latter as a useful measure of impact but also encourages the bank to aim to provide portfolio-level reporting on these key impact indicators based specifically on the companies in its portfolio.