Second-Party Opinion Download

Sustainalytics is of the opinion that the Neo Industrial Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the environmental enhancement of Reka’s product portfolio and improvement of Reka’s environmental performance of production activities will lead to positive environmental impacts and advance the UN Sustainable Development Goals 7 and 12.

PROJECT EVALUATION/SELECTION

Neo’s internal process to evaluate and select projects is managed by the Neo Green Bond Committee. Projects are evaluated by the committee and the final decision on selection is the responsibility of the Chief Financial Officer. This process is aligned with market practice.

MANAGEMENT OF PROCEEDS

Neo’s processes for management of proceeds is handled by the Finance department. An amount equal to the net proceeds of the green bond issuance will be held in a subaccount and allocated to eligible expenditures. Proceeds will be tracked via an internal accounting system. Unallocated proceeds will be held in accordance to Neo’s investment guidelines in cash, deposits and/or other money market instruments. Neo intends to fully allocate proceeds within 24-months of issuance.

REPORTING

Neo intends to report allocation proceeds in the financial information section of its website on an annual basis until full allocation. In addition, Neo is committed to reporting on relevant impact metrics. Sustainalytics views Neo’s allocation and impact reporting as aligned with market practice.