Project Details
Project
Thermo Fisher Scientific Sustainable Financing Framework Second-Party Opinion (2021)
Client
Thermo Fisher Scientific Inc.
Project Type
Sustainability Bond/Loan
Industry Group
Pharmaceuticals
Use of Proceeds
Eco-efficient products; Renewable energy; Green buildings; Energy efficiency; Socio-economic advancement; COVID-19 Response;
Location
U.S.
Evaluation Date
Oct 2021
Evaluation Summary
Sustainalytics is of the opinion that the Thermo Fisher Scientific Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – COVID-19 Response, Racial Equity and Social Justice, Renewable Energy, Energy Efficiency, Green Buildings, Sustainable Supply Chain and Sustainable Products and Processes – are aligned with those recognized by the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 7, 8, 10, 11 and 12.
PROJECT EVALUATION / SELECTION
Thermo Fisher’s internal process for evaluating and selecting projects is overseen by relevant executives and its Sustainable Finance Committee. Thermo Fisher Scientific’s environmental and social risk management system are applicable to all projects under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Thermo Fisher Scientific will track allocations internally and intends to fully allocate within 24 months and refinance activities up to 36 months prior to issuance. Unallocated proceeds are temporarily invested in cash, cash equivalents, short-term investments, or used to repay other borrowings. This is in line with market practice.
REPORTING
Thermo Fisher Scientific intends to report on allocation of proceeds on its website on an annual basis until full allocation. The report will include information on the total amount of proceeds allocated per project category and additional descriptions of select eligible projects. In addition, Thermo Fisher Scientific is committed to reporting on relevant impact metrics. Sustainalytics views Thermo Fisher Scientific’s allocation and impact reporting as aligned with market practice.