Project Details
Project
M+ Group Sustainability-Linked Bond Framework Second-Party Opinion (2022)
Client
M+ Group
Project Type
Sustainability Linked Bond or Note
Industry Group
-
Use of Proceeds
-
Location
Croatia
Evaluation Date
Jun 2022
Evaluation Summary
Sustainalytics is of the opinion that the M+ Group Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:
Selection of Key Performance Indicators
The M+ Group Sustainability-Linked Bond Framework includes two KPIs: (i) Absolute scope 1 and 2 GHG emissions (in tCO2e), and (ii) percentage of women in management teams (see Table 1). Sustainalytics considers the KPIs chosen to be strong.
Calibration of Sustainability Performance Targets
Sustainalytics considers the SPTs to be aligned with M+ Group’s sustainability strategy. Sustainalytics considers SPT 1 to be highly ambitious, based on past performance, peer performance and alignment with science-based trajectories. Sustainalytics considers SPT 2 to be ambitious based on past performance and peer performance.
Bond Characteristics
Meritus Ulaganja d.d. will link the sustainability-linked bond’s financial characteristics, such as coupon adjustment, to achievement or failure to achieve the SPTs, which is aligned with the Sustainability-Linked Bond Principles 2020.
Reporting
Meritus Ulaganja d.d. commits to report annually on its progress on the KPIs, and expects to include the relevant figures in its annual sustainability report. Meritus Ulaganja d.d. commits to disclose relevant information that may affect the KPIs and that enables investors to monitor the level of ambition of the SPTs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles 2020.
Verification
Meritus Ulaganja d.d. commits to have external limited assurance conducted against each SPT for each KPI at least once a year, which is aligned with the Sustainability-Linked Bond Principles 2020 on verification.