Second-Party Opinion Download

Selection of Key Performance Indicators

The Eltel Sustainability-Linked Finance Framework includes three KPIs: i) Absolute scope 1 GHG emissions; ii) Renewable electricity sourcing; and iii) Suppliers with science-based targets (see Table 1). Sustainalytics considers KPI 1 as very strong, and KPI 2 and KPI 3 as strong based on their materiality, relevance, scope of applicability and comparability to external benchmarks.

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Eltel’s sustainability strategy. Sustainalytics further considers SPT 1a, SPT 1b, SPT 2a and SPT 2b to be highly ambitious and SPT 3a and SPT 3b to be ambitious based on comparison with past performance, peer performance and science-based trajectories.

Financial Instrument Characteristics

Eltel will link the financial characteristics of the instruments to its performance on the SPTs. A coupon or interest rate step-up or premium payment will apply if any SPT has not been achieved by its observation date. Additionally, the target observation date will be set before the first call date for hybrid bonds, and failure to achieve an SPT will result in Eltel paying a pre-defined premium payment when the hybrid bond is called. This is aligned with the Sustainability-Linked Bond Principles and Sustainability-Linked Loan Principles.

Reporting

Eltel commits to reporting on its progress on the KPIs on an annual basis in either a stand-alone report or integrated into its annual report published on its website. Eltel also commits to disclosing relevant information that may affect the KPIs, such as the recalculations of relevant KPI metrics. These reporting commitments are aligned with the Sustainability-Linked Bond Principles and Sustainability-Linked Loan Principles.

Verification

Eltel commits to having an external verifier provide either limited or reasonable assurance against each SPT for each KPI once a year, which is aligned with the SLBP and SLLP.