Project Details
Project
Dynapack Asia Pte. Ltd. Sustainability-Linked Loan Framework Second-Party Opinion (2023)
Client
Dynapack Asia Pte. Ltd.
Project Type
Sustainability Linked Loan
Industry Group
Other
Use of Proceeds
N/A
Location
Singapore
Evaluation Date
Oct 2023
Evaluation Summary
Selection of Key Performance Indicators (KPIs)
The Dynapack Asia Pte. Ltd. Sustainability-Linked Loan Document includes three KPIs (KPI 1: Absolute scope 1, 2 and 3 GHG emissions reduction (ktCO2e); KPI 2: Recycled resin use (%); and KPI 3: Women in senior leadership (%) (see Table 1). Sustainalytics considers KPI 1 to be very strong, and KPIs 2 and 3 to be strong based on materiality, relevance, scope of applicability and adequacy to external benchmarking, as and where applicable.
Calibration of Sustainability Performance Targets (SPTs)
Sustainalytics considers the SPTs to be aligned with the sustainability strategy of the Dynapack Asia Group. Sustainalytics further considers SPT1, SPT 2 and SPT 3 to be ambitious based on historical performance, peer performance and alignment with science, as and where applicable.
Loan Characteristics
Dynapack Asia Pte. Ltd. will link the loan’s financial characteristics to its achievement of the SPTs, an interest margin adjustment of 5 bps will be triggered by achieving or failing to achieve two of the three SPTs at the annual target observation dates in the loan period.
Reporting
Dynapack Asia Pte. Ltd. commits to make reporting of its performance on the KPIs available to lenders on an annual basis. The reporting commitments are aligned with the Sustainability-Linked Loan Principles.
Verification
Dynapack Asia Pte. Ltd. commits to have external limited assurance conducted against each SPT for each KPI bi-annually. This is aligned with the Sustainability-Linked Loan Principles.