Aib Group Plc · EURONEXT:A5G
Aib — Debt Investor Presentation (June 2022)
25 slides from Aib's debt investor presentation, June 2022
Slide 1: Green Bond Investor Presentation
AIB June 2022 Green Bond Investor Presentation
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 We recognise the responsibility that comes with the scale and
Slide 5: ESG Progress
ESG ESG BOARD GOVERNANCE PLEDGE TO NET ZERO TARGETS ESG LEADERSHIP RATINGS PROGRESS ESTABLISHED (2016) DO MORE & AMBITIONS (MSCI, SUSTAINALYTICS & S&P) 2016 - 2018 2019 2020 2021 OWN FOOTPRINT Group-wide certfication Energy & Environmental Reducing energy - Heating, ventilation & Property migration
Slide 6: ESG Commitments and Propositions
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) • 2022 ESG Risk Rating: 13.0 (Low Risk) • 5th perce
Slide 10: AIB Green Bond Framework
AIB Green Bond Framework 10
Slide 11: Green Bond Framework
Green Bond Framework • Align our funding strategy with our sustainability strategy • Funding projects or assets that mitigate climate change by reducing emissions, protecting ecosystems or having a positive Rationale environmental impact. • Green Bond issuances serve as a testament to AIB’s leadersh
Slide 12: Use of Proceeds
Use of Proceeds Eligible use of proceeds categories Renewable Energy Green Commercial Buildings Green Residential Buildings Use of Proceeds Use of Proceeds Use of Proceeds • Renewable energy • Green Commercial Buildings in Ireland • Green Residential Buildings - Loans to finance or refinance equipme
Slide 13: GBF Project Evaluation / Selection Process Overview
GBF Project evaluation / Selection Process Overview Process for Project Evaluation and Selection Compliance with the Green Bond Eligibility Criteria (i.e. Use of Proceeds) Mitigation of » ‘DNSH’ & ‘MS’ Alignment with AIB’s sustainability strategy concerns » Compliance with official and international
Slide 14: Management of Proceeds
Management of Proceeds Aggregated portfolio approach used to manage the proceeds Eligible Loan Portfolio c.€2.6bn* Additional eligible green projects will be added to the Eligible Green Loan Portfolio to the extent required Any assets that become ineligible will be removed and replenished where nece
Slide 15: Reporting / Impact
Reporting / Impact • AIB makes and keeps readily available annual reporting on the allocation of net proceeds to Eligible Green Loans and, wherever feasible, reporting on the impact of the Eligible Green Loan Portfolio. 2019 - 2021 currently available. • AIB will align, on a best effort basis, the i
Slide 16: Green Bond Portfolio & Impact FY21
Green Bond Portfolio & Impact FY21 AIB Green Bond Portfolio Impact Reporting FY21 Total Portfolio Size €2.567m # € % Renewable 1,191,156 ton 80 1.319m c. 51% Total Est. Avoided Emissions CO2eq/yr Energy Green Buildings 182 1.227m c. 48% Renewable Energy € 1.319m Clean Est. Avoided Emissions 1,152,40
Slide 17: Second-Party Opinion
Second-Party Opinion • Sustainalytics has issued a positive SPO on AIB’s Green Bond Framework, • SPO includes a full EU Taxonomy Alignment Assessment Updated – Dec 2021 Use of Proceeds: The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles 202
Slide 18: EU Taxonomy Assessment
EU Taxonomy Assessment Validated by Alignment % 91% aligned (€2.34bn / €2.567bn total portfolio) Eligible Green Green Buildings Renewable Energy Clean Transportation Category (Commercial) (Wind, Solar & Bioenergy) (Electric Vehicles) Ireland + UK EEA Geography Ireland Ireland 78% of Renewables 22% o
Slide 19: Appendix
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Slide 20: 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 21: 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 COUNTRIE STAKEHOLDERS WEBSITE COMMENCEMENT S AP
Slide 22: Embedding Climate Risk across the Organisation
Embedding Climate Risk across the Organisation Progress made over last 12 months • Climate risk has been recognised as a key risk driver within our Material Risk Assessment and updates made to AIB’s Risk Appetite Statement relating to business model risk and credit risk. • An assessment of climate-r
Slide 23: Contact details
Contact details Mark Whelan Head of Term Funding Mark.A.Whelan@aib.ie +353 1 772 4027 Aidan O’Mahony Head of ESG Markets Aidan.P.O’Mahony@aib.ie +353 1 772 4027 Niamh Hore Head of Investor Relations Niamh.A.Hore@aib.ie +353 1 6411817 Siobhain Walsh Head of Debt Investor Relations Siobhain.M.Walsh@ai
Slide 24: 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 25: 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