Second-Party Opinion Download

Sustainalytics is of the opinion that the JSC Russian Railways Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds is aligned with those recognized as impactful by the GBP and GLP. Sustainalytics considers that investments in electric locomotives or trains for passenger transportation will lead to positive environmental impacts and advance the UN Sustainable Development Goal (11) Sustainable cities and communities.

PROJECT EVALUATION/SELECTION

JSC Russian Railways’ internal process in evaluating and selecting projects is in line with market practice. The corporate finance department, accounting, investments, passenger transportation and environment and sustainable development departments are responsible for project evaluation and selection in alignment with the Use of Proceeds outlined in the Framework.

MANAGEMENT OF PROCEEDS

JSC Russian Railways’ processes for management of proceeds are aligned with market practice. Investments in eligible projects will be tracked through a Green Financing Register. Pending full allocation, proceeds may be invested in cash, cash equivalents or for repayment of short-term indebtedness where holdings do not conflict with the environmental objectives of the bonds or loans.

REPORTING

JSC Russian Railways intends to report annually on allocation of proceeds and relevant impact metrics as long as the Green Financing Instruments are outstanding (until being repurchased/called back by the Company at some point in future). The Green Financing Reports will be made available on the Company’s website. Sustainalytics views Russian Railways’ allocation and impact reporting as aligned with market practice.