Second-Party Opinion Download

Sustainalytics is of the opinion that the Otto Group Sustainable Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP), Green Loan Principles 2018 (GLP), Social Bond Principles 2018 (SBP) and Sustainability Bond Guidelines 2018 (SBG). This assessment is based on the following

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles, Green Loan Principles and Social Bond Principles. Sustainalytics considers that the purchase of responsibly sourced raw materials will lead to positive environmental impacts and advance the following UN Sustainable Development Goals: (1) No Poverty, (4) Quality Education (5) Gender Equality, (8) Decent Work and Economic Growth and (15) Life on Land.

PROJECT EVALUATION/SELECTION

The Otto Group’s internal process for evaluating and selecting projects is aligned with market practice. The Sustainable Finance Committee, which is comprised of representatives from Group Corporate Finance, Group Corporate Responsibility and relevant subject matter experts, is responsible for project evaluation and selection.

MANAGEMENT OF PROCEEDS

The Otto Group’s processes for management of proceeds are aligned with market practice. Proceeds will be managed with a portfolio approach and will be tracked until full allocation. Pending full allocation, the Otto Group may temporarily invest the proceeds from any instruments issued under this Framework in its treasury liquidity portfolio (in cash or cash equivalents) or use such proceeds to pay back outstanding indebtedness. However, the Otto Group expects proceeds issued under this Framework to be fully allocated at the time of issuance to refinance expenditures related to the procurement of certified textiles and furniture as outlined by the eligibility criteria in the Otto Group Sustainable Finance Framework.

REPORTING

The Otto Group intends to report allocation of proceeds and impact metrics on a portfolio basis on its creditor relations website and in its sustainability report which is published as a part of the annual report. The Group intends to report to investors within one year from the date of issuance and annually, until full allocation of proceeds from sustainable finance instruments. Sustainalytics views the Otto Group’s allocation and impact reporting as aligned with market practice.