Second-Party Opinion Download

Sustainalytics is of the opinion that the TIM Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Energy Efficiency, Renewable Energy, Circular Economy, Digital Inclusion, Response to Health Crises such as COVID-19 – are aligned with those recognized by both the Green Bond Principles, Green Loan Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 8, 9 and 12.

PROJECT EVALUATION/SELECTION

Telecom Italia’s Sustainability Steering Committee, comprised of representatives from its CSR, Finance and other relevant departments and chaired by the CEO, will evaluate and select projects and ensure they comply with the eligibility criteria in this Sustainability Financing Framework. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Telecom Italia will manage the net proceeds on a portfolio basis and will establish and maintain a sustainability register to track progress of eligible projects. The Company intends to fully allocate net bond proceeds within 24 months of issuance and has committed to a lookback period of 2 calendar years. Unallocated proceeds may be temporarily invested in accordance with the Company’s investment guidelines. This is in line with market practice.

REPORTING

Telecom Italia intends to report on allocation of proceeds on its website on an annual basis until full allocation. The Company’s allocation reporting will include all relevant details including the amount allocated per category, share of financing versus refinancing and the amount of unallocated proceeds. In addition, Telecom Italia is committed to reporting on relevant impact metrics and the Sustainability Financing Framework lists relevant potential metrics for both the green and social categories. Sustainalytics views Telecom Italia’s allocation and impact reporting as aligned with market practice.