Second-Party Opinion Download

Sustainalytics is of the opinion that the Pepper 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 (green mortgages) is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the mortgage loans will finance green buildings in Australia and advance the UN Sustainable Development Goals.

PROJECT EVALUATION/SELECTION

N The selection of eligible green mortgages will be completed by Pepper’s dedicated Green Bond Investment Committee (GBIC) composed of members from Group Treasury (Group Treasurer, Group Head of Corporate Treasury and Group Head of Debt Capital Markets), with specialist support from teams in Human Resources and Legal. Pepper’s approach to the process for project evaluation and selection is seen as aligned with current market practices.

MANAGEMENT OF PROCEEDS

Pepper will manage and earmark proceeds through a portfolio approach, in which all loans meet the eligibility criteria. Proceeds will be segregated and tracked using internal information systems. The unallocated proceeds may be invested in accordance with Pepper’s investment guidelines. Sustainalytics assesses this approach as being in line with market practices.

REPORTING

Pepper intends to issue an annual Green Bonds report which will be verified by an external third party. The report will contain relevant information on allocation which, in Sustainalytics’ view, is in line with market practices. Additionally, where possible, Pepper will disclose qualitative and/or quantitative environmental impact reporting. Sustainalytics encourages Pepper to develop potential key performance indicators and report on quantitative metrics where possible.