Nordea Green Funding Framework
SUMMARY
External review - ISS Corporate SPO
ISS-CORPORATE >
SECOND PARTY
OPINION (SPO)
SPO SECTION
Part IA:
Sustainability Quality of the Issuer and Asset Pool
Nordea Bank Abp
31 January 2024
VERIFICATION PARAMETERS
Type(s) of
instruments
contemplated
Relevant standards
Scope of verification
Lifecycle
Validity
■ Green Bonds, Green Covered Bonds and Green Deposits
Alignment with
ICMA GBP
EVALUATION
The Issuer has defined a formal concept for its Green
Bonds and Green Covered Bonds, regarding use of
proceeds, processes for project evaluation and
selection, management of proceeds and reporting.
This concept is in line with the ICMA Green Bond
Principles. This SPO covers the assets of Nordea Aligned
Bank and Nordea's wholly owned subsidiaries
Nordea Kredit Realkreditaktieselskab, Nordea
Mortgage Bank Plc, Nordea Eiendomskreditt AS and
Nordea Hypotek AB (publ) (the "Nordea MCIS").
The Green Bonds will (re)finance eligible asset
categories which include: Renewable Energy (Wind,
Solar, hydropower), Green Buildings, Pollution
Prevention and Control, Clean Transportation,
Energy Efficiency and Sustainable Management of
Living Resources.
Part II:
Product and/or service-related use of proceeds
categories* individually contribute to one or more of
the following SDGs:
Green Bond Principles (GBP), as administered by the
International Capital Market Association (ICMA) (as of
June 2021 with June 2022 Appendix 1)
EU Taxonomy Climate Delegated Act (as of June 2023)
■ Nordea Green Funding Framework (as of December 21,
2023)
■ Nordea Green Bond asset portfolio (as of November 28,
2023)
⚫ Nordea Green Covered Bond portfolios (as of November
28,2023)
Sustainability
quality of the
Selection
Criteria
■ Post-issuance verification
This SPO is valid for Nordea's outstanding Green Bond
and Green Covered Bond issuances and as long as the
asset portfolio does not change, until the first to occur of
(a) the release of the next annual verification of these
issuances (expected in 2024) or (b) December 31, 2024.
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©2024 | Institutional Shareholder Services and/or its affiliates
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Part III:
Alignment with
EU Taxonomy
Part IV:
Consistency of
Green Finance
Instrument with
Nordea's
Sustainability
Strategy
G
13
14
Positive
Process-related use of proceeds categories
individually improve (i) the Issuer's/Borrower's
operational impacts and (ii) mitigate potential
negative externalities of the Issuer's/Borrower's
sector on one or more of the following SDGs:
Nordea's project characteristics, due diligence
processes and policies have been assessed against
the requirements of the EU Taxonomy (Climate
Delegated Act of June 2023), on a best-efforts
basis. The nominated Green Covered Bonds are
considered to be:
Aligned with the Climate Change Mitigation
Criteria.
Some Do No Significant Harm Criteria have
not been met due to a lack of available
information
According to the Platform on Sustainable Finance,
Final Report on Minimum Safeguards (October
2022), banks do not need to consider MSS with
regards to household mortgages.
The key sustainability objectives and the rationale
for issuing Green Finance Instrument are clearly
described by the Issuer. The majority of the project
categories considered are in line with the
sustainability objectives of the Issuer.
severe
At the date of publication of the report and
ESG
leveraging ISS
по
Research,
controversies have been identified.
Consistent
with Issuer's
sustainability
strategy
Highlights from ISS Corporate's second party opinion
The Issuer has defined a formal concept for its Green Bonds and Green
Covered Bonds, regarding use of proceeds, processes for project
evaluation and selection, management of proceeds and reporting. This
concept is in line with the ICMA Green Bond Principles
Nordea's project characteristics, due diligence processes and policies
have been assessed against the requirements of the EU Taxonomy
(Climate Delegated Act of June 2023), on a best-efforts basis. The
nominated Green Covered Bonds are considered to be:
- Aligned with the Climate Change Mitigation Criteria.
-
Some Do No Significant Harm Criteria have not been met due to
a lack of available information
The key sustainability objectives and the rationale for issuing Green
Finance Instrument are clearly described by the Issuer. The majority of
the project categories considered are in line with the sustainability
objectives of the Issuer
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