Second-Party Opinion Download

Sustainalytics is of the opinion that the Thai Union Group Public Company Limited Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following: 

Selection of Key Performance Indicators (KPIs)

Thai Union Group’s Sustainability-Linked Financing Framework includes three KPIs, of which Sustainalytics’ opines on KPI 2 and KPI 3. Sustainalytics considers KPI 2 to be strong given that it is a direct measure of performance on a material environmental issue, it is based on a clear and consistent methodology, and it can be assessed against external benchmarks. KPI 3, which is an indirect performance metric, is considered to be adequate based on its scope of applicability to the Group’s operations, its materiality/relevance and its clear calculation methodology. 

Calibration of Sustainability Performance Targets (SPTs)

Thai Union’s Sustainability-Linked Financing Framework includes three SPTs, of which Sustainalytics opines on two: SPT 2 – a reduction in its carbon emissions intensity by 0.56 by 2026 and SPT 3 – 100% of tuna vessels in Thai Union’s supply chains to be fitted with electronic monitoring and/or human observers by 2026. Sustainalytics considers SPT 2 to be ambitious given that it exceeds peer performance and targets and aligns with a well-below-2-degree scenario, while SPT 3 is considered moderately ambitious as it represents an improvement over past performance and exceeds peer performance.   

Bond Characteristics

Thai Union will link the bond’s financial characteristics to the achievement of the SPTs, namely a step-up (or potentially a step-down) in the coupon rate from the first coupon date after the relevant observation date until the maturity date of the bond. Sustainalytics positively notes that all SPTs need to be met to avoid an increase in the coupon rate. 

Reporting

Thai Union commits to report on an annual basis on its performance on the KPIs in a separate report, which will be available on its website. The reporting commitments are aligned with the SLBP.  

Verification

Thai Union commits to have external limited or reasonable assurance conducted on its KPI performance at the communicated SPT deadline, which is aligned with market expectations.