MuniFin Green Finance and Liquidity Portfolio Evaluation slide image

MuniFin Green Finance and Liquidity Portfolio Evaluation

MuniFin 43 Copyright MuniFin Appendix 7 ISS ESG Second Party Opinion SPO Part 1: Performance against SBP Part 2: Sustainability quality of the asset pool Part 3: Issuer sustainability performance Summary The issuer has defined a formal concept for its Social Bonds regarding use of proceeds, processes for project evaluation and selection, management of proceeds and reporting. This concept is in line with the ICMA SBPS. The overall sustainability quality of the asset pool in terms of sustainability benefits, risk avoidance and minimization is good based upon the ISS ESG Social Bond KPIs. The Social Bond KPIs contain a clear description of eligible asset categories which include social housing, welfare and education projects. All assets of the asset pool are located in Finland, a highly regulated and developed country. Legislative frameworks in this country sets minimum standards which reduce environmental and social risks. The issuer itself shows a medium sustainability performance and has been given a rating of C+, which classifies it as 'Prime' by the methodology of the ISS ESG Corporate Rating. It is rated 11th out of 117 companies within its sector as of 04.03.2020. This equates to a high relative performance, with a Decile Rank of 1. Evaluation Positive Positive Status: Prime Rating: C+ Decile Rank: 1 Contribution or obstruction SDG Goals Social Housing Welfare: Healthcare Welfare: Sports Welfare: Cultural Education Significant contribution Significant Limited contribution Limited contribution contribution Significant contribution 10 & 11 3 3 4 4 Source: ISS ESG, available: https://www.kuntarahoitus.fi/app/uploads/sites/2/2020/03/200304_Munifin-SPO-final-1.pdf
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