Second-Party Opinion Download

Sustainalytics is of the opinion that the Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Clean Transportation, Sustainable Water and Wastewater Management, and Eco-efficient and/or circular economy adapted products, production technologies and processes – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals (“SDGs”), specifically SDGs 6, 7, 9, and 12.

PROJECT EVALUATION / SELECTION

Arca Continental intends to establish a Green Bond Subcommittee comprising of representatives from its Quality and Environmental Affairs, Corporate Finance, Beverage Business Unit and Public Affairs, Communications, and Sustainability teams that will be responsible for the annual assessment and selection of Eligible Projects per the criteria defined in the Framework. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Arca Continental’s Treasury team, along with the Green Bond Subcommittee, will be responsible for the allocation and tracking of net proceeds to Eligible Projects. Arca Continental intends to achieve full allocation of proceeds within 36 months from the date of each Green Instrument. The unallocated proceeds will be held in cash or invested in marketable securities, in accordance with Arca Continental’s firm-wide liquidity management/investment policy. This is in line with market practice.

REPORTING

Arca Continental intends to report on the allocation and the impact of proceeds approximately one year from the date of the bond issuance and annually thereafter until full allocation. The allocation reporting is expected to include category-level details on the Eligible Projects, proportion of financed and refinanced projects, and the balance of unallocated proceeds. In addition, Arca Continental intends to report on relevant quantitative impact where feasible and has provided indicative metrics within the Framework. Sustainalytics views Arca Continental’s allocation and impact reporting as aligned with market practice.