Project Details
Project
Sumitomo Mitsui Trust Bank Green Bond Second-Party Opinion
Client
Sumitomo Mitsui Trust Bank, Limited
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Japan
Evaluation Date
Feb 2021
Evaluation Summary
Sustainalytics is of the opinion that the Sumitomo Mitsui Trust Bank, Limited (“SuMi TRUST” or “the Bank”) Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds - Renewable Energy, Energy Efficiency, Clean Transportation, Pollution Prevention and Control, and Green Buildings - are aligned with those recognized by the GBP 2018. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals 7, 9, 11 and 12.
PROJECT EVALUATION/SELECTION
SuMi TRUST’s project evaluation and selection process will be conducted by several project teams including Wholesale Business Planning Department, Structured Finance Department, and the Sustainability Management Department, based on the eligibility criteria. The final decision on the eligible projects will be made by the Wholesale Business Planning Department. This is in line with market practice.
MANAGEMENT OF PROCEEDS
SuMi TRUST’s Wholesale Business Planning Department will track the net proceeds of its green bonds, using internal systems at least once a year, until the maturity of the green bonds. Pending allocation, net proceeds will be invested in overnight or other short-term financial instruments. This is in line with market practice.
REPORTING
SuMi TRUST intends to report on allocation of proceeds and relevant environmental performance indicators on its website on an annual basis. Allocation reporting will include a brief description and the current amount of the proceeds allocated. Impact reporting will include CO2 emissions, energy saved, waste reduced/recycled, and the number and certification levels of green buildings. Additionally, the Bank is committed to receiving post issuance reports from an independent provider. Sustainalytics views SuMi TRUST’s reporting commitment along with post issuance reports as in line with market practice.