Project Details
Project
Abertis Sustainability-Linked Financing Framework Second-Party Opinion (2022)
Client
Abertis Infraestructuras S.A.
Project Type
Sustainability Linked Bond or Note; Sustainability Linked Loan;
Industry Group
Transportation Infrastructure
Use of Proceeds
N/A
Location
Spain
Evaluation Date
Jun 2022
Evaluation Summary
Sustainalytics is of the opinion that the Abertis Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2020 and the Sustainability-Linked Loan Principles 2022. This assessment is based on the following:
Selection of Key Performance Indicators
The Abertis Sustainability-Linked Financing Framework includes three KPIs associated with the Company’s GHG emissions and the number of electric vehicle charging points installed (see Table 1). Sustainalytics considers KPI 1 to be very strong, KPI 2 to be strong and KPI 3 to be adequate based on their relevance, materiality, the scope of applicability and adequacy to external benchmarking.
Calibration of Sustainability Performance Targets
Sustainalytics considers the SPTs to be aligned with Abertis’ sustainability strategy. Sustainalytics further considers SPT 1 to be highly ambitious, SPT 2 to be moderately ambitious and SPT 3 to be ambitious based on a comparison with historical performance, alignment with peers and, where possible, alignment with science-based targets.
Financing Instruments Characteristics
Abertis will link the financial or structural characteristics of its sustainability-linked debt instruments to the achievement of the SPTs. The change in financial or structural characteristics may trigger a coupon step-up, change in the redemption premium or margin adjustment. Abertis may assign a relative weighting to the KPIs when determining the aggregate coupon step-up, change in the redemption premium or margin adjustment, which will be specified by Abertis in the legal transaction documents of the respective instrument.
Reporting
Abertis commits to report on its progress on the KPIs on an annual basis in its Integrated Annual Report or similar report. Additionally, Abertis also intends to disclose relevant information that affects progress on the KPIs, such as any re-calculation of the baselines for the KPIs, re-assessment of the KPIs, restatement of the SPTs, pro-forma adjustments of baselines or KPI scopes. The reporting commitments are aligned with the SLBP and SLLP.
Verification
Abertis Infraestructuras commits to have external limited assurance conducted against each SPT for each KPI at least once a year, which is aligned with market expectations.