Second-Party Opinion Download

Project Details

Project

The Central America Bottling Corporation Sustainability-Linked Financing Framework Second Party Opinion (2022)

Client

Central America Bottling Corporation

Project Type

Sustainability Linked Bond or Note

Location

Guatemala

Evaluation Date

Jan 2022

Evaluation Summary

Sustainalytics is of the opinion that The Central America Bottling Corporation Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2020 and Sustainability-Linked Loan Principles 2021. This assessment is based on the following: 

Selection of Key Performance Indicators (KPIs)

The Central America Bottling Corporation Sustainability-Linked Financing Framework includes two KPIs (i) absolute scope 1 and 2 GHG emissions (tCO2e) and (ii) the number of manufacturing plants operated by CBC  that are certified with Carbon Trust Standard for Zero Waste to Landfill (see Table 1). Based on their relevance, materiality and scope of applicability, Sustainalytics considers KPI 1 and KPI 2 to be adequate. 

Calibration of Sustainability Performance Targets (SPTs)

Sustainalytics considers the SPTs to be aligned with CBC's sustainability strategy. Sustainalytics further considers SPT 1 ambitious based on its alignment with (i) a 1.5°C scenario, (ii) its peers’ targets, and (iii) historical performance. SPT 2 is considered to be ambitious based on past performance and alignment with peers. 

Bond/Loan Characteristics

CBC will link the financial characteristics of its sustainability-linked instruments to the achievement of the SPTs, namely an increase in the coupon rate or premium payment amount. A financial penalty will be applicable if (i) a KPI has not achieved the SPT on the target observation or (ii) the satisfaction of the SPTs has not been confirmed by the applicable External Verifiers in accordance with their customary procedures. 

Reporting

CBC commits to report on an annual basis on its performance on the KPIs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles 2020 and Sustainability-Linked Loan Principles 2021.  

Verification

CBC commits to have external limited assurance conducted on its KPIs performance at the communicated SPTs deadline, which is aligned with market expectations. 

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