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ESG Bonds

BNG Bank raises funding in the capital markets by issuing bonds. This funding enables the Dutch public domain to achieve its sustainable and social objectives. Besides conventional bonds, BNG Bank issues bonds with an ESG label. The funds raised through these bonds are used to finance municipalities and housing corporations and to promote the 17 Sustainable Development Goals (SDGs) of the United Nations. 

Through our ESG bond framework (“Sustainable Finance Framework”) we set up a methodology to connect the bond proceeds with the loans to our clients. We report the impact on the 17 SDGs and the proceeds categories from the ICMA GBP and SBP.

BNG Bank ESG labelled bonds were Initially (since 2014) issued under a best-in-class framework. Together with Tilburg University affiliated research partner PON & Telos, BNG Bank developed an original methodology to rank clients based on quantitative and qualitative sustainability indicators. In 2021 this framework was succeeded by the BNG Bank Sustainable Finance Framework, which connects the expenditures of Dutch municipalities, and of Dutch social housing associations, to the 17 SDGs of the United Nations.

Sustainable Finance Framework

The Sustainable Finance Framework has been set up together with PON & Telos and consists of two sub-frameworks. Each of these sub-frameworks connects the loans to a different client group to bond proceeds. As such the  expenditures of Dutch municipalities, and Dutch social housing associations, are mapped to the UN SDGs and the ICMA use of proceeds categories:

  1. Sub-framework for Dutch Municipalities
  2. Sub-framework for Dutch Social Housing Associations

The framework is aligned with ICMA’s Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines (SBG). The second party opinion (SPO) to the framework has been provided by ISS ESG. Annual impact reporting is provided in cooperation with PON & Telos, affiliated partner of Tilburg University in the field of sustainability. Where applicable, BNG Bank ESG Bonds are displayed on the Luxembourg Green Exchange (LGX).

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