VPBank Sustainable Finance Framework Second-Party Opinion 2024

VPBank engaged Sustainalytics to review the VPBank Sustainable Finance Framework, dated August 2024, and provide a Second-Party Opinion on the Framework’s environmental & social impact credentials and its alignment with the Green Bond Principles – GBP (2021), Social Bond Principles – SBP (2023) of ICMA, Sustainability Bond Guidelines – SBG (2021); and Green Loan Principles – GLP (2023), and Social Loan Principles – SLP (2023) of LMA.

Sustainalytics’ Second-Party Opinion reflects Sustainalytics’ independent opinion on the alignment of the reviewed Framework with current market standards and the extent to which the eligible project categories are credible and impactful. As part of the Second-Party Opinion, Sustainalytics assessed the following:

• The Framework’s alignment with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023, as administered by ICMA, and the Green Loan Principles 2023 and Social Loan Principles 2023, as administered by LMA, APLMA, and LSTA;
• The credibility and anticipated positive impacts of the use of proceeds; and
• The alignment of the issuer’s sustainability strategy and performance and sustainability risk management in relation to the use of proceeds

The Framework defines eligibility criteria under the following environmental categories:

1. Renewable Energy
2. Energy Efficiency
3. Clean Transport
4. Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes
5. Sustainable Water and Wastewater Management
6. Environmentally Sustainable Management of Living Natural Resources and Land Use
7. Pollution Prevention and Control
8. Green Buildings
9. Blue Finance
10. Climate Change Adaptation

    The Framework defines eligibility criteria under the following social categories:

11. Access to Essential Services – Financial Inclusion, Employment Generation, Socio-economic Advancement and Empowerment
12. Access to Essential Services – Healthcare
13. Access to Essential Services – Education and Vocational Training
14. Affordable Housing
15. Affordable Basic Infrastructure

Sustainalytics is of the opinion that the VPBank Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7, 9, 11, 12, 13, 14 and 15.

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