Aib Group Plc · EURONEXT:A5G
Aib — Debt Investor Presentation (March 2022)
29 slides from Aib's debt investor presentation, March 2022
Slide 1: Social Bond Investor Presentation
AIB March 2022 Social 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: Sustainable Communities - Our Strategy, Progress and Targets
SUSTAINABLE COMMUNITIES - 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 come
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 Property migration & retrofit Reducing energy - Heating, ven
Slide 6: ESG Propositions and ESG Commitments
ESG Propositions ESG Commitments Lending for projects in Green Mortgage for higher TCFD Housing, Healthcare, energy efficiency homes Education’ UNEP FI – Principles for Responsible Banking Green Personal Loan for Sustainability Linked retrofitting homes and Electric Loans for Corporate customers Veh
Slide 7: 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) • 2021 ESG Risk Rating: 14.5 (Low Risk) • 6th perce
Slide 8: AIB Social Bond Framework
AIB Social Bond Framework 8
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: Management of Proceeds
Management of Proceeds Aggregated portfolio approach used to manage the proceeds Eligible Loan Additional eligible Social Loans will be added to the Eligible Portfolio - €1.7bn Social Loans Portfolio to the extent required to ensure that an amount equal to the net proceeds from outstanding Social Bo
Slide 15: 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 16: 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 17: 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 18: Social Bond Portfolio FY21
Social Bond Portfolio FY21 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 Portfolio 167.6 137.8 1.7bn EUR Access to Healthcare 68.3 28.7 Social and Aff
Slide 19: Pre-Issuance Impact FY21 (1/2)
Pre-Issuance Impact FY21 (1/2) 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 number of Estimated number of people using care defi
Slide 20: Pre-Issuance Impact FY21 (2/2)
Pre-Issuance Impact FY21 (2/2) 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 of loan EUR 209m Estimated total Term loans RCFs T
Slide 21: Consolidated Allocation & Impact FY21
Consolidated Allocation & Impact FY21 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 (Est. number of people using care • 1,543 (Est. number
Slide 22: Appendix
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Slide 23: 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 24: 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 STAKEHOLDERS COUNTRIES WEBSITE COMMENCEMENT APP
Slide 25: Early adopter and supporter of the ESG agenda
Early adopter and supporter of the ESG agenda Growth in Energy, Climate Action & Infrastructure loan book Focus area 2021 Progress €bn €10bn €4.7bn new climate & environment lending by 2023 green lending since 2019 70% 19% E of new lending to be green by 2030 of new lending in 2021 Net Zero ambition
Slide 26: 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 27: Contact details
Contact details Mark Whelan Head of Term Funding Mark.A.Whelan@aib.ie +353 1 772 4027 Aidan O’Mahony Term Funding 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@aib.ie +3
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