Second-Party Opinion Download

Sustainalytics is of the opinion that the Colruyt Group Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and Social Loan Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Clean Transportation, Energy Efficiency, Sustainable Water and Wastewater Management,  Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes and/or Certified Eco-efficient Products and Employment Generation – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to deliver positive environmental and/or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 8, 9 and 12. 

PROJECT EVALUATION AND SELECTION

Colruyt Group’s internal process for evaluating and selecting projects is overseen by its Sustainable Finance Committee, consisting of representatives from the corporate sustainability and treasury departments and the Board’s sustainability domain. Colruyt Group has established internal procedures to address environmental and social risks associated with projects being financed. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Colruyt Group’s Sustainable Finance Committee will manage the net proceeds on a portfolio basis and will track the allocation of proceeds using a sustainability mark within an internal tracking system. Colruyt Group intends to reach full allocation as soon as practicable and commits to allocate the net proceeds within three years from the respective issuance date. Pending allocation, net proceeds will be temporarily held in cash or cash equivalents or in liquid short term products, in accordance with Colruyt Group’s liquidity policy. This is in line with market practice. 

REPORTING

Colruyt Group intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include a description of eligible green and social projects by category, the total amount of sustainable financing issued and the total eligible projects portfolio by category, the balance of unallocated proceeds and the share of financing and refinancing (showing the percentage of the total eligible projects portfolio corresponding to projects financed during the reporting year and during previous reporting years). In addition, Colruyt Group also intends to report on relevant impact metrics, to the extent feasible. Sustainalytics views Colruyt Group’s allocation and impact reporting commitments as aligned with market practice.