Second-Party Opinion Download

Sustainalytics is of the opinion that the İşbank Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, and Green Loan Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes, Green Buildings, Clean Transportation, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Sustainable Water, Wastewater Management and Climate Adaptation, Terrestrial and Aquatic Biodiversity Conservation, Access to Essential Services, and Employment Generation Including Through the Potential Effect of SME Financing – are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 6, 7, 8, 9, 10, 11, 12, 14, and 15.  

PROJECT EVALUATION / SELECTION

İşbank’s internal process in evaluating and selecting projects is managed by the Sustainable Finance Working Group (the “SFWG”). The SFWG consists of representatives of various departments, including Investor Relations and Sustainability Division, responsible for İşbank’s sustainability oversight. This is in line with market practice. In addition, the Bank’s responsible finance approach is applicable to all allocation decisions under the Framework and is viewed as adequate risk management systems. Sustainalytics considers this to be in line with market practice. 

MANAGEMENT OF PROCEEDS

İşbank’s processes for management of proceeds is overseen by the Financial Institutions Division. İşbank will allocate to a portfolio of loans and ensure that the Sustainable Loan Portfolio is adjusted periodically in order to match the amount of net proceeds of outstanding loans and/or bonds issued under the Framework. Pending allocation, proceeds may be temporarily invested in cash and/or cash equivalent, and/or liquid marketable instruments. Sustainalytics considers this to be in line with market practice. 

REPORTING

İşbank intends to report on allocation of proceeds on its website, on an annual basis, until full allocation. İşbank will also report on the relevant environmental and social impacts of the projects, where feasible. A detailed list of impact metrics can be found in Appendix 4. Sustainalytics views İşbank’s allocation and impact reporting as aligned with market practice.