Second-Party Opinion Download

Sustainalytics is of the opinion that the Owens-Illinois, Inc. (“O-I”) 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 six green categories for eligible use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Sustainable Water and Wastewater Management, (iv) Environmentally Friendly Production Technologies and Processes, (v) Circular Economy, and (vi) Environmentally Friendly Adapted Products – are aligned with those recognized by the Green Bond Principles 2018. Overall, the use of proceeds will, in Sustainalytics’ opinion, have positive environmental impacts and advance the UN Sustainable Development Goals, specifically 6, 7, 9, and 12.

PROJECT EVALUATION/SELECTION

O-I’s VP in charge of Sustainability, VP of Global Technology and R&D, and the Corporate Treasurer will oversee the project selection process. O-I identifies and assesses environmental, health and safety risks and opportunities associated with projects along with an internal audit process. O-I will also seek to include questionnaires and scoring related to project qualification under the Framework in the long-term. Sustainalytics considers O-I’s project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

O-I’s Treasury team, in conjunction with the Sustainability team, will track the allocation of net proceeds through a Green Bond Register. Pending allocation, net proceeds will be invested, at the company’s own discretion, in cash or cash equivalents and/or short-term liquid marketable instruments, or to repay existing debt, as per the company’s liquidity management policy. This is in line with market practice.

REPORTING

O-I intends to publish annual information as part of its Corporate Social Responsibility Report or in a separate press release on its website, until full allocation. The reporting will include the aggregated amount allocated on a category level, the proportion of net proceeds used for financing and refinancing, confirmation that the net proceeds were allocated (in part or in full) to Eligible Green Projects, as well as relevant impact metrics. Sustainalytics views OI’s annual allocation and impact reporting, along with review by an independent auditor, as aligned with market best practice.