Second-Party Opinion Download

Sustainalytics is of the opinion that the KPN Green Finance Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds – Energy Efficiency, Circular Economy and Clean Transportation – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11 and 12. 

PROJECT EVALUATION / SELECTION

KPN’s Green Finance Committee is responsible for the evaluation and selection of eligible projects. KPN’s company-wide risk management measures, which include consideration of environmental and social risks, are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process in line with market practice.  

MANAGEMENT OF PROCEEDS

KPN’s treasury department will manage and track the allocation of proceeds using a dedicated green registry. KPN commits to fully allocate proceeds within 36 months of issuance or borrowing. Unallocated proceeds will be temporarily held or invested in KPN’s treasury liquidity portfolio. This is in line with market practice. 

REPORTING

KPN intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the percentage of proceeds allocated, the outstanding volume of green finance instruments, the balance of unallocated proceeds and the share of new financing and refinancing. In addition, KPN is committed to reporting on relevant impact metrics. Sustainalytics views KPN’s allocation and impact reporting as aligned with market practice.