Project Details
Project
Ülker Bisküvi Sanayi AS Sustainability-Linked Financing Second Party Opinion (2025)
Client
Ülker Bisküvi Sanayi AS
Project Type
Sustainability Linked Bond or Note; Sustainability Linked Loan;
Industry Group
Food Products
Use of Proceeds
N/A
Location
Türkiye
Evaluation Date
Aug 2025
Evaluation Summary
Ülker has developed the Ülker Sustainability-Linked Financing Framework, dated August 2025, under which it intends to obtain sustainability-linked loans. The financial characteristics of the sustainability-linked loans will be tied to the achievement of sustainability performance targets (SPTs) for two key performance indicators (KPIs): i) absolute scope 1 and 2 GHG emissions (tCO2e); and ii) absolute scope 3 FLAG and non-FLAG GHG emissions (tCO2e). The Framework, initially published in 2024, has been updated due to baseline restatement, change in the scope of financing instruments and expanded scope of the KPIs to cover 100% of the Company’s scope 3 emissions.
We have assessed the KPIs as follows: KPI 1 as Very Strong, given that it: i) is a direct measure of Ülker’s performance on a material environmental issue; ii) has a high scope of applicability jointly with KPI 2; iii) follows a clear methodology that is externally defined; and iv) supports benchmarking against external contextual benchmarks. KPI 2 is Strong, given that it: i) is a direct measure of Ülker’s performance on a material environmental issue; ii) has a high scope of applicability together with KPI 1; iii) follows a clear methodology that is externally defined; and iv) does not support benchmarking against external contextual benchmarks, which are specific to FLAG and non-FLAG emissions.
In addition, all SPTs align with the Company’s sustainability strategy. We have assessed the SPTs as follows: SPTs 1A, 1B, 1C, 1D, 1E and 1F are Highly Ambitious given that these are: i) below historical performance but represents a continuous improvement from the baseline; ii) above similar targets set by peers; and iii) validated by the Science Based Targets initiative (SBTi) as aligned with the 1.5°C decarbonization trajectory. SPTs 2A, 2B, 2C, 2D and 2E are Moderately Ambitious given that these are: i) below historical performance; ii) above similar targets set by peers; and iii) not aligned with science-based decarbonization trajectories. SPT 2F is Ambitious given that it is: i) above historical performance; ii) above peer performance; and iii) aligned with the SBTi’s well below 2° C trajectory.
We have assessed the Framework as Aligned with the Sustainability-Linked Loan Principles 2025.