Aib Group Plc · EURONEXT:A5G
Aib — Debt Investor Presentation (January 2023)
29 slides from Aib's debt investor presentation, January 2023
Slide 1: AIB Group Plc Social Bond Framework
AIB Group Plc January 2023 Social Bond Framework
Slide 2: Sustainability at AIB
Sustainability at AIB 2
Slide 3: AIB's Sustainable Value Creation - FY2021
AIB’s Sustainable Value Creation - FY2021 Sustainable Economic, Social and Environmental development is at the heart of our operations • As a bank at the very heart of the Irish economy, our role is central to the creation and delivery of sustainable economic, social and environmental development in
Slide 4: ESG - Our Strategy, Progress and Targets
ESG - OUR STRATEGY, PROGRESS AND TARGETS ENSURING A GREENER TOMORROW BY BACKING THOSE BUILDING IT TODAY CLIMATE & ENVIRONMENT ECONOMIC & SOCIAL INCLUSION FUTURE PROOF BUSINESS We’re actively integrating climate change into our business to accelerate We recognise the responsibility that comes with th
Slide 5: ESG Progress
ESG PROGRESS ESG BOARD GOVERNANCE PLEDGE TO NET ZERO TARGETS ESG LEADERSHIP RATINGS ESTABLISHED (2016) DO MORE & AMBITIONS (MSCI, SUSTAINALYTICS & S&P) 2016 - 2018 2019 2020 2021 OWN FOOTPRINT Group-wide certfication Energy & Environmental Mgt. Reducing energy - Heating, ventilation & air Property m
Slide 6: ESG Propositions and Commitments
ESG Propositions ESG Commitments SOCIAL BOND - €1bn Green Mortgage for higher supporting lending in TCFD energy efficiency homes Housing, Healthcare, Education’ and SMEs UNEP FI – Principles for Responsible Banking Green Personal Loan for Sustainability Linked retrofitting homes and Electric Loans f
Slide 7: Climate Risk Update
Climate Risk Update Significant steps taken to analyse Physical & Transition Risk in 2021: • Detailed work on ECB stress testing (Modules 1, 2 & 3) completed and awaiting feedback • Undertook initial climate risk quantification - physical flood risk for our residential mortgage portfolio and transit
Slide 8: Sustainable Lending Framework
Sustainable Lending Framework • The Sustainable Lending Framework is a classification and measurement tool for new lending, which also aligns with our regulatory obligations to understand the impact of our lending on both the climate and society. • Benefits: • Enables governance structure around gre
Slide 9: ESG Ratings
ESG Ratings • Rated as AA (Leader) on 22 Jan 2021, up from A (Average) in 2019* • 2021: 70/100 (2020: 61/100) • 87th percentile of banks (2020: 78th percentile) • Listed as member of the S&P Global Sustainability Yearbook 2022 (top 15% of industry) • June 2022 ESG Risk Rating: 11.0 (Low Risk) • 5th
Slide 10: AIB Social Bond Framework
AIB Social Bond Framework 10
Slide 11: Social Bond Framework
Social Bond Framework Being a responsible member of society is a cornerstone of AIB’s business. We believe that Social Bond financing offers a way to Rationale create transparency around funds targeted to provide positive societal impact and/or mitigating social problems 1 2 3 4 5 Project Evaluation
Slide 12: Use of Proceeds Overview
Use of Proceeds Overview SBP category Criteria UN SDG i. Healthcare facilities Access to Healthcare ✓ Loans dedicated to the financing of healthcare facilities such as hospitals and primary care facilities, affiliated to the relevant national healthcare system and schemes and/or broadly accessible b
Slide 13: Use of Proceeds – Social Impact Matrix
Use of Proceeds – Social Impact Matrix SBP category SBP Sub-category Target Population Social Benefits / Objectives Alignment with National Policy Frameworks • General public • Increase access to quality, timely and • Irish National Treatment Purchase Fund (NTPF) Access to Healthcare Hospitals • Ind
Slide 14: SBF Project Evaluation / Selection Process Overview
SBF Project evaluation / Selection Process Overview Process for Project Evaluation and Selection Compliance with the Social Bond Eligibility Criteria (i.e. Use of Proceeds) Alignment with AIB’s sustainability strategy Compliance with official and international environmental and social standards and
Slide 15: Selection Process of the Eligible SME Portfolio
Selection process of the eligible SME portfolio Eligibility Criteria Background of Pobal HP Deprivation index 1. Be an SME as per EU Commission definition. ✓ The Pobal HP Deprivation index is Ireland’s most widely used social gradient metric, which scores each Small Area (min. 50 – 2. Not be engaged
Slide 16: Management of Proceeds
Management of Proceeds Aggregated portfolio approach used to manage the proceeds Eligible Social Bond Additional eligible Social Loans will be added to the Eligible Portfolio = c. €2.4bn Social Loans Portfolio to the extent required to ensure that (FY22) an amount equal to the net proceeds from outs
Slide 17: Second-Party Opinion
Second-Party Opinion ISS ESG has issued a positive Second Party Opinion on AIB’s Social Bond Framework CONTRIBUTION OR Use of Proceeds – Opinion: USE OF PROCEEDS SUSTAINABLE DEVELOPMENT GOALS OBSTRUCTION ISS ESG considers the Use of Proceeds description provided within the AIB Social Bond Framework
Slide 18: Final Report: EU Social Taxonomy
Final Report: EU Social Taxonomy • AIB welcomes the final EUT Report on a proposed Social Taxonomy (Feb 2022) • Initial high-level assessment indicates AIB SBF aligns well with all EUT ‘core objectives’: 1) Decent work 2) Adequate living standards and wellbeing for end-users 3) Inclusive and sustain
Slide 19: EU Social Taxonomy: High-level alignment assessment
EU Social Taxonomy: High-level alignment assessment SBP Sub- EUT Substantial SBP category EUT Core Objective EUT Sub-Objective ‘AAAQ’ Analysis DNSH & MS considerations category Contribution Access to Hospitals • Ensuring access to quality healthcare Healthcare 2. Adequate living standards and produc
Slide 20: Allocation Reporting: Social Bond Portfolio FY21
Allocation Reporting: Social Bond Portfolio FY21 FY 22 Pool Reporting will be available in March’23 FY21 Portfolio (EURm) Geographic Distribution by Sector (EURm) 360.5 (21%) 167.6 (10%) 359.1 Ireland UK OECD * SMEs Financing 288.8 (17%) 293.6 239 222.7 Access to Education 191.8 Eligible Social Port
Slide 21: Impact Reporting - FY21 (1/2)
Impact Reporting - FY21 (1/2) FY 22 Pool Reporting will be available in March’23 Social and Affordable Housing Access to Healthcare Target Group Target Group • Low-income individuals and families meeting the 1,375,773 36,346 social and/or affordable housing requirements • General public Estimated nu
Slide 22: Impact Reporting – FY21 (2/2)
Impact Reporting – FY21 (2/2) FY 22 Pool Reporting will be available in March’23 Total jobs impact of outstanding RCFs by sector SMEs Financing Target Group • SMEs in socio-economically disadvantaged areas in 2,824 Ireland Estimated number of jobs created/enabled Impact of AIB's SME lending by type
Slide 23: Consolidated Allocation & Impact FY21
Consolidated Allocation & Impact FY21 FY 22 Pool Reporting will be available in March’23 Eligible SBP SDG(s) Addressed Target Group(s) portfolio Portfolio Impact Impact per EURm invested Category (EURm) Access to • General public Healthcare • Individuals with specific physical and/or • 1,375,773 (Es
Slide 24: Appendix
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Slide 25: Sustainability Governance at AIB
Sustainability Governance at AIB SBAC is the overarching Board Advisory Committee responsible for the guidance of our sustainability agenda. The Committee is appointed by the Board to assist them in fulfilling its independent oversight responsibilities in relation to ESG matters. To ensure ongoing a
Slide 26: Commitments, Memberships & Partnerships
COMMITMENTS, MEMBERSHIPS & PARTNERSHIPS AIB also partners with various community organisations on an ongoing basis The below outlines a table of the key voluntary commitments made by AIB as relevant to our sustainability strategy and reporting. DATE OF COUNTRIES STAKEHOLDERS WEBSITE COMMENCEMENT APP
Slide 27: Contact details
Contact details Mark Whelan Head of Term Funding Mark.A.Whelan@aib.ie +353 1 772 4027 Maddison Hampson ESG Specialist Term Funding Maddison.P.Hampson@aib.ie +353 1 772 4023 Grace Loring ESG Specialist Term Funding Grace.E.Loring@@aib.ie +353 1 772 4023 Niamh Hore Head of Investor Relations Niamh.A.H
Slide 28: Disclaimer (1/2)
Disclaimer (1/2) THIS DOCUMENT IS INTENDED TO PROVIDE NON-EXHAUSTIVE, GENERAL INFORMATION. THIS DOCUMENT MAY CONTAIN OR INCORPORATE BY REFERENCE PUBLIC INFORMATION NOT SEPARATELY REVIEWED, APPROVED OR ENDORSED BY AIB AND ACCORDINGLY, NO REPRESENTATION, WARRANTY OR UNDERTAKING, EXPRESS OR IMPLIED, IS
Slide 29: Disclaimer (2/2)
Disclaimer (2/2) THIS DOCUMENT REPRESENTS CURRENT AIB POLICY AND INTENT AS AT THE DATE OF THIS DOCUMENT AND IS SUBJECT TO CHANGE WITHOUT NOTICE AND IS NOT INTENDED NOR CAN BE RELIED ON, TO CREATE LEGAL RELATIONS, RIGHTS OR OBLIGATIONS. ANY DECISION TO PURCHASE ANY AIB SOCIAL BONDS SHOULD BE MADE SOL
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