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Green Bond Report
August 2021
These materials may not be used or relied upon for any purpose other than as specifically contemplated
by a written agreement with Credit Suisse AG and/or its Affiliates (hereafter “Credit Suisse”).
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Table of Contents
1. About this report………………………………………………… 3
2. Overview…………………………………………………………. 3
3. Credit Suisse Green Finance Framework summary…………….. 4
4. Credit Suisse green debt financing instruments………………… 6
5. Asset portfolio and allocation summary…………………………. 7
6. Impact reporting…………………………………………………. 8
7. Independent limited assurance report…………………….........10
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1. About this report
This report details Credit Suisse’s outstanding green debt financing instruments, as well as our eligible
Green asset portfolio as of March 31st, 2021. We report on both the allocation of proceeds and,
where feasible, the impact achieved through the relevant financing. We have engaged
PricewaterhouseCoopers AG as an independent assurance provider to provide limited assurance on both the allocation and impact metrics disclosed in this report.
2. Overview
As a global leader in financial services, Credit Suisse recognizes its responsibility and position to help
combat climate change and environmental degradation by supporting the transition to a low carbon
sustainable economy and the achievement of the UN Sustainable Development Goals (SDGs).
A commitment to sustainability is at the core of our business, and in 2020 we created Sustainability,
Research & Investment Solutions (“SRI”) as an Executive Board-level function that builds upon our legacy in sustainable finance and aims to deliver a comprehensive, systematic sustainability strategy
around the bank. 2020 also marked a milestone in Credit Suisse’s sustainability journey with the announcement of our goal to provide at least CHF 300 billion of sustainable financing to support
transition strategies over the next 10 years, across renewables, Green/Blue/Transition bonds, low-carbon energy solutions and UN SDG-aligned financings.
Alongside the support we offer our clients, one of the most impactful ways in which we can create a
lasting positive impact is through the issuance of green debt financing instruments. To that extent, in 2019 we established Credit Suisse’s Green Finance Framework that outlines our process for issuance
of green debt financing instruments. On May 18th 2020, we issued our inaugural Green Bond in alignment with the Credit Suisse Green Finance Framework, the ICMA Green Bond Principles (“GBP”)
and our broader sustainability strategy.
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3. Credit Suisse Green Finance Framework summary
Credit Suisse’s Green Finance Framework is aligned with the ICMA Green Bond Principles and follows
the GBPs four components: (i) Use of Proceeds; (ii) Process for Project Evaluation and Selection; (iii)
Management of Proceeds; and (iv) Reporting. Each of the eligible project or asset categories has been
assessed for its contribution to the SDGs.
Green Finance Framework Components:
Use of
Proceeds
Eligible Project or Asset Categories include:
Renewable energy 🗸
Energy efficiency
Low carbon buildings 🗸
Conservation finance
Clean transportation 🗸
Sustainable waste management
Sustainable water infrastructure
Circular economy
🗸 Allocated proceeds from green financing
Project
Evaluation
and
Selection
Potential projects and assets are identified by Credit Suisse’s business teams.
The selection of eligible projects from this potential pool is made by a dedicated
Green Finance Committee comprising senior representatives from Credit Suisse
Treasury, Debt Capital Markets, Sustainability Strategy, Advisory and
Finance (previously Impact Advisory and Finance ) including our Chief
Sustainability Officer, Investor Relations and Sustainability Risk (previously
Sustainability Affairs).
Projects are evaluated according to the following criteria:
Financial due diligence
Environmental, Social and Governance evaluation
Impact evaluation
Management
of Proceeds
Proceeds from green debt financing instruments are managed by Credit Suisse
in a portfolio approach.
Reporting Credit Suisse expects to publish a monitoring report on an annual basis until full
allocation. This report is expected to:
Provide an update of total amount of proceeds allocated to Eligible
Projects / Assets
State the remaining balance of any unallocated funds
Describe the qualitative and, where possible, quantitative, indicators of
the projects’ environmental impact
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Eligible Financial Products: Include debt (e.g. bank loans, bonds, construction loans, warehouse
facilities, bridge loans, mezzanine debt, back leverage, revolvers, corporate debt) and equity (e.g. tax,
project, corporate).
Exclusionary Criteria: Projects not eligible for inclusion in green financing are those involved in coal-
fired power, defence, large-scale hydropower, gambling, mining, nuclear energy, oil & gas, palm oil,
tobacco and wood pulp.
External Review: ISS ESG, one of the world’s leading rating agencies in the field of sustainable
investment, has provided a Second Party Opinion on the Green Finance Framework1. The Second
Party Opinion confirms the alignment of the Framework with the ICMA Green Bond Principles and
assesses the sustainability quality of the underlying asset pool as positive.
1 The Second Party Opinion is available alongside the Green Finance Framework at https://www.credit-suisse.com/about-us/en/investor-
relations/debt-investors/green-finance.html
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4. Credit Suisse green debt financing instruments
As of March 31st, 2021, we have issued one green bond and three structured notes with green use
of issuance proceeds under the Credit Suisse Green Finance Framework, with total proceeds
amounting to USD 568 million equivalent.
Senior OpCo Green Bond
Issue
date
Maturity
date
Coupon
rate
Currency Issue size (in million)
USD equiv. (in million)
ISIN
18.05.2020 19.05.2025 0.450% EUR 500.0 545.72 XS2176686546
Total 545.7
Similar to our Green Bond, the net proceeds of the issue of the structured notes have been allocated
or reallocated from time to time to the financing and/or refinancing, in whole or in part, of eligible
projects or assets with a clear and defined environmental benefit in line with Credit Suisse’s Green
Finance Framework.
Structured Products
Issue
date
Maturity
date
Currency Used
capacity (in USD million)
ISIN
30.10.2020 29.10.2021 EUR 4.43 CH0428282500
30.10.2020 29.10.2021 USD 4.7 CH0428282492
29.01.2021 31.01.2024 EUR 13.44 CH0579217776
Total 22.6
2 FX on issue date, EURUSD 1.0913 3 FX on issue date, EURUSD 1.1646 4 FX on issue date, EURUSD 1.21375
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5. Asset portfolio and allocation summary
As of March 31st, 2021, our eligible green asset portfolio comprises projects across Clean
Transportation, Renewable Energy, and Low Carbon Buildings, totalling USD 1,151 million. Assets
currently financed through the eligible use of proceeds include tax equity investments in commercial,
industrial and small utility scale solar projects; corporate lending facilities to companies in the solar
power and clean transportation sectors5; export finance facilities for low-carbon rolling stock and
railway infrastructure; and commercial buildings certified under internationally recognised green
building standards.
% of net proceeds of green funding allocated to eligible green asset portfolio 100%
% of eligible green asset portfolio allocated 49%
Portfolio overview and summary of proceeds allocated against eligible categories
(US$ in million) EMEA
North
America Total
% financed by
proceeds
% of proceeds
allocated to category
Renewable energy 367 367
Solar 367 100% 65%
Low carbon buildings 61 61
LEED Gold CS-owned
commercial building 61 100% 11%
Clean transportation 548 174 722
Electric vehicles 174 80% 25%
Rolling stock6 373 0% 0%
Rail infrastructure6 175 0% 0%
Total 548 603 1,151 100%
5 Investments in the form of Revolving Credit Facilities with a combined commitment of USD 240 million. Only the drawn amount, which can fluctuate subject to the facilities’ utilization, is included in the eligible green asset portfolio. 6 For rolling stock and rail infrastructure facilities, the value corresponds to the approved credit limit as per March 31st, 2021, and this credit limit corresponds to the outstanding amount as and when the facilities are repaid.
Eligible portfolio geography
EMEA 48%
North America 52%
Clean transportation 63%
Renewable energy 32%
Low carbon buildings 5%
Eligible portfolio category
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6. Impact reporting
As one of the key pillars of the Credit Suisse Green Finance Framework, we are committed to outline
the environmental impact achieved through our green financing where it is feasible and practical to do
so.
For the use of proceeds allocated to projects eligible under the renewable energy criteria, this
comprises the metric tons of CO2 avoided on an annual basis, both on a total project basis and on a
pro-rata share based on Credit Suisse’s net exposure percentage of the assets’ value.
Use of
Proceeds
category
Total
capacity
(MW)
Total
annual
kWh / kW
Total annual
metric tons
CO2 avoided
Credit Suisse
net exposure
(%) of asset
FMV
Credit Suisse
share of annual
metric tons CO2
avoided7
Renewable
energy (Solar)
453 9,269 397,070 46.9% 184,871
The annual metric tons of CO2 avoided are estimated based on the combined nominal capacity of the
eligible projects and an emissions factor of 0.000709 tCO2/kWh8. This emissions factor is based on
the U.S. national weighted average CO2 marginal emissions rate, and does not include any greenhouse
gases other than CO2.
To estimate Credit Suisse’s share of the impact, our net investment into each tax equity asset in the
eligible portfolio is divided by the initial appraised fair market value of the assets. This proportion is
then multiplied by the gross CO2 avoidance figures of the entirety of each project included in the
portfolio, and annualised on the basis of each project’s modelled term.
7 Indicates the sum of Credit Suisse’s share of CO2 avoided on an instrument level 8 Year 2019 data. Source: https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator-calculations-and-references
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Annex
Relevant eligibility criteria for the eligible green asset portfolio as of March 31st, 2021 is included
below. The Credit Suisse Green Finance Framework further details the criteria for the eligible project
or asset categories outlined in the framework.
Sector Criteria
Solar 1.1. Eligible Project & Assets relating to solar energy generation shall be
projects or assets that operate or are under construction to operate in one
or more of the following activities:
1.1.1. Solar electricity generation facilities
1.1.2. Wholly dedicated transmission infrastructure and other supporting
infrastructure for solar electricity generation facilities including
inverters, transformers, energy storage systems and control systems
1.1.3. Solar thermal facilities such as solar hot water systems
2. Non-solar fuel use
2.1. Eligible Project & Assets that have activities in solar electricity generation facilities or solar thermal facilities shall have a minimum of 85% of
electricity generated from solar energy resources
Low-carbon
buildings
1. Commercial buildings: Buildings must be in the top 15% of their city in terms of emissions performance. This “hurdle rate” in emissions terms ratchets down
to zero (carbon) in 2050
2. Residential buildings: Existing instruments such as local building codes, energy rating schemes (e.g. US Energy Star) and energy labeling schemes (e.g.
Energy Performance Certificates in the UK) are leveraged as proxies for
the achievement of the 15% hurdle rate
3. Upgrade projects: Building improvements that achieve emission reductions of
30% to 50% (depending on bond term) from a baseline will qualify for
certification
Clean
transportation
Low emission transport infrastructure and public transportation, including fully
electrified vehicles, fully electrified rolling stock and the associated transport
infrastructure.9
9 The eligible portfolio currently includes one USD 17.4m rolling stock asset as an exception to this criteria. This rolling stock is a bi-modal model
fuelled with hydrogenated vegetable oil (HVO), which will be fully electrified and replaced with batteries by 2025 in line with the electrification of the relevant railway line and infrastructure.
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Independent Limited Assurance Report
on the eligible Green asset portfolio and its environmental impact
To the Green Finance Committee of Credit Suisse AG, Zurich
We have been engaged to perform assurance procedures to provide limited assurance on the eligible Green asset portfolio and
its environmental impact performance indicators included in the published Green Bond Report (‘Report’) of Credit Suisse AG and
its consolidated subsidiaries (‘Credit Suisse‘ or the ‘CS AG’) for the period ended March 31, 2021.
Scope and subject matter
Our limited assurance engagement focused on the eligible Green asset portfolio included in the Green Bond Report prepared
based on the Credit Suisse “Green Finance Framework”, published in June 2019.
Furthermore our limited assurance engagement focused on selected environmental impact performance indicators as of March
31, 2021 published in the Green Bond Report, by assessing the following data and information: ‘Total capacity (MW)’, ‘Total
annual kWh/ kW’, ‘Total annual metric tons CO2 avoided’, ‘Credit Suisse net exposure (%) of asset FMV’ and ‘Credit Suisse
share of annual metric tons CO2 avoided’ as disclosed on page 8 of the Report.
Criteria
The eligible Green asset portfolio included in the Report was prepared based on Credit Suisse “Green Finance Framework”,
published in June 2019. The eligibility criteria used for the preparation of the eligible Green asset portfolio is categorized and
described in chapter “Use of Proceeds” in the Credit Suisse “Green Finance Framework”. The “Use of Proceeds” chapter in the
Credit Suisse “Green Finance Framework” is consistent with the “Use of Proceeds” chapter in the Green Bond Principles (‘GBP‘)
2018 edition issued by the International Capital Market Association (‘ICMA‘).
The environmental impact performance reporting criteria used by CS AG is described and disclosed on page 8 of the Report. The
estimate of the annual metric tons CO2 avoided is based on the combined nominal capacity of the eligible projects and the
emissions factor according to the U.S. national weighted average CO2 marginal emission rate.
Inherent limitations
The mapping of the GBP categories to environmental objectives of the CS AG’s eligible Green asset portfolio is a process of
project or asset evaluation and selection – under the second core component of the GBP - directed by the CS AG as the issuer of
a Green Bond and communicated to its investors. Attributions are indicative only, as the relevant objectives and their relative
contributions will be project or asset specific. Furthermore, the eligible Green project or asset may also be deemed to contribute
to various objectives not necessarily with a given priority among them. The list of project categories in ICMA’s GBP guidance,
while indicative, captures the most commonly used types of projects supported by or expected to be supported by the Green
Bond market. Thus, the assessment is based on the CS AG’s judgement and CS AG’s common understanding of what qualifies
as an eligible Green project or asset and how it may contribute positively to environmental objectives. It is therefore possible that
a categorisation of an eligible Green project or an asset is interpreted differently by a report reader.
The accuracy and completeness of environmental impact indicators are subject to inherent limitations given their nature and
methods for determining, calculating and estimating such data. Our assurance report should therefore be read in connection with
the CS AG’s methodology described on page 8 of the Report on environmental impact indicators reporting. Further, the
greenhouse gas quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine
emissions factors and the values needed to combine emissions of different gases.
PricewaterhouseCoopers Ltd, Birchstrasse 160, P.O. Box, CH-8050 Zurich, Switzerland Telephone: +41 58 792 44 00, Facsimile: +41 58 792 44 10, www.pwc.ch PricewaterhouseCoopers Ltd is a member of a global network of companies that are legally independent of one another.
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Green Finance Committee’ responsibility
The Green Finance Committee of Credit Suisse AG is responsible for the eligible Green asset portfolio, the Credit Suisse “Green
Finance Framework” and the environmental impact performance indicators, as well for preparing the Green Bond Report which
involves the selection, preparation and presentation of the information in accordance with the eligibility criteria and the
environmental impact performance reporting criteria. This responsibility includes the design, implementation and maintenance of
related internal controls relevant to the preparation of the Green Bond Report and the determination of environmental impact
performance indicators that are free from material misstatement, whether due to fraud or error. Furthermore, the Green Finance
Committee is responsible for the selection and application of the eligibility criteria and adequate record keeping.
Our independence and quality control
We are independent of CS AG in accordance with the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) that
are relevant to our audit of the financial statements and other assurance engagements in Switzerland. We have fulfilled our other
ethical responsibilities in accordance with the IESBA Code.
Our firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control
including documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Our responsibility
Our responsibility is to perform an assurance engagement and to express a conclusion on the eligible Green asset portfolio and
the environmental impact performance indicators as reported in Green Bond Report. We planned and performed our procedures
in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) ‘Assurance engagements other
than audits or reviews of historical financial information‘ and ISAE 3410 ‘Assurance Engagements on Greenhouse Gas
Statements’. The standards require that we plan and perform the assurance engagement to obtain limited assurance on whether
anything comes to our attention to indicate that the eligible Green asset portfolio is not allocated, in all material respects, in
accordance with the eligibility Criteria and whether the identified environmental impact performance indicators are free from
material misstatement.
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the
risk assessment procedures, including procedures performed in response to the assessed risks. Consequently, the nature, timing
and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance
engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance
engagement. The procedures selected depend on the assurance practitioner’s judgement.
We performed the following procedures, among others:
Reviewing the application of eligibility criteria on a sample of projects and assets in the eligible Green asset portfolio and
inspecting the relevant source documentation;
Interviewing CS AG’s representatives responsible for the Use of Proceeds process and the environmental impact
performance indicators;
Performing procedures on a sample basis to verify that projects and assets in the eligible Green asset portfolio have been
appropriately recorded, collated and reported;
Performing tests on a sample basis of evidence supporting the selected environmental impact performance indicators as
outlined in the scope and subject matter section concerning completeness, accuracy, adequacy and consistency; and
Inspecting the relevant documentation on a sample basis regarding the Green Bond and Structures Notes disclosed in the
Report to confirm their reason of offer was associated with funding eligible Green project or asset.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
2 Credit Suisse AG | Independent Limited Assurance Report | Green Bond Report
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Limited assurance conclusion
Based on our work performed, nothing has come to our attention causing us to believe that:
a) In all material aspects, the eligible Green asset portfolio included in the published Green Bond Report of CS AG for the
period ended March 31, 2021 is not eligible based on the Credit Suisse “Green Finance Framework”; and
b) The environmental impact performance indicators included in the published Green Bond Report of CS AG for the period
ended March 31, 2021 as described in the scope and subject matter section are not prepared and disclosed in all
material respects and the annual metric tons CO2 avoided is not calculated in accordance with on the combined
nominal capacity of the eligible projects and the emissions factor according to the U.S. national weighted average CO2
marginal emission rate.
PricewaterhouseCoopers AG
Christophe Bourgoin Raphael Rutishauser
Zurich, August 27, 2021
3 Credit Suisse AG | Independent Limited Assurance Report | Green Bond Report
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CREDIT SUISSE AG Paradeplatz 8
8070 Zürich
Switzerland
www.credit-suisse.com/greenfinance