Project Details
Project
Constellium Sustainability-Linked Financing Framework Second-Party Opinion
Client
Constellium SE
Project Type
Sustainability Linked Bond or Note
Industry Group
Diversified Metals
Use of Proceeds
N/A
Location
France
Evaluation Date
Feb 2021
Evaluation Summary
Sustainalytics is of the opinion that Constellium’s Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:
Selection of Key Performance Indicators (KPIs)
Constellium’s Sustainability-Linked Financing Framework includes two KPIs: (i) GHG Emissions Intensity, and (ii) Recycled Aluminium Input (see Table 1). Based on a consideration for the materiality of the KPIs, their relevance to Constellium’s business, the scope of their applicability, and clear and consistent definitions, Sustainalytics views KPIs 1 and 2 to be adequate.
Calibration of Sustainability Performance Targets (SPTs)
Sustainalytics considers the SPTs to be aligned with the issuer’s sustainability strategy. Sustainalytics further considers the SPTs to be moderately ambitious based on the SPTs, indicating performance that is aligned with Constellium’s historical performance on reducing GHG emissions intensity and increasing the input of recycled aluminium.
Bond Characteristics
Constellium will link the bond’s financial characteristics to the achievement of the SPTs, namely an increase in coupon rate. The incremental change in coupon is triggered if either of the SPTs are not met.
Reporting
Constellium commits to report on an annual basis on its performance on the KPIs in its website. Constellium commits to disclose relevant information that affect the KPI performance, including quantitative or qualitative details. The reporting commitments are aligned with the SLBP.
Verification
Constellium commits to have an external limited assurance conducted on its KPI performance at the communicated SPT deadline, which is aligned with market expectations.