Second-Party Opinion Download

Sustainalytics is of the opinion that the Schaeffler Group Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles 2018. 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. Sustainalytics considers that investments in (i) clean transportation, (ii) renewable energy, (iii) eco-efficient and/or circular economy adapted products, production technologies and processes, and (iv) energy efficiency will lead to positive environmental impacts and advance the UN Sustainable Development Goals 7, 9, 11 and 12.

PROJECT EVALUATION/SELECTION

Schaeffler’s internal process for evaluating and selecting projects is handled by the Sustainability Committee formed by the Executive Board and selected managers with relevant functional responsibility. The Committee is responsible for selecting projects to be financed with proceeds from green finance instruments in compliance with the Eligibility criteria outlined in the Framework. This process is aligned with market practice.

MANAGEMENT OF PROCEEDS

Schaeffler’s processes for management of proceeds is managed by the Treasury department through a portfolio approach. In the event that proceeds are temporarily unallocated, they will be managed according to Schaeffler’s internal policies and held and/or invested, at Schaeffler’s discretion, in its treasury liquidity portfolio, in cash or other short term and liquid instruments or to pay back a portion of its outstanding indebtedness. This process is aligned with market practice.

REPORTING

Schaeffler intends to report on the allocation of proceeds at least annually or until full allocation on its corporate website, including the total amount of investments and expenditures in the eligible portfolio, the share of financing and refinancing, the balance of unallocated proceeds, and the location of the assets. Additionally, the Issuer intends to report on relevant impact metrics where and when feasible. This process is aligned with market practice.