Project Details
Project
Coca-Cola FEMSA Green Bond Framework Second-Party Opinion
Client
Coca-Cola FEMSA, S.A.B. de C.V.
Project Type
Green Bond/Loan
Industry Group
Food Products
Use of Proceeds
N/A
Location
Mexico
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the Coca-Cola FEMSA Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (“GBP”). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Ecoefficient and/or circular economy adapted products, production technologies and processes, Clean and Mass Transportation, Environmentally Sustainable Management of Living Natural Resources and Land Use, and Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 9, 11, 12, 13 and 15.
PROJECT EVALUATION/SELECTION
Coca-Cola FEMSA’s sustainability team is responsible for evaluating and selecting projects. Final approval for project eligibility will be jointly provided by its Chief Financial Officer, Supply Chain and Engineering Officer and Corporate Affairs Officer. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Coca-Cola FEMSA’s sustainability and finance team will be responsible for managing proceeds raised from the sale of its Green Bonds. Coca-Cola FEMSA plans to allocate proceeds on an on-going basis. Unallocated proceeds will be temporarily held in cash, cash equivalents or liquid securities in accordance with the Company’s investment policy. Coca-Cola FEMSA commits to replace projects that are no longer eligible with other eligible projects. This is in line with market practice.
REPORTING
Coca-Cola FEMSA commits to report on allocation of proceeds on its website on an annual basis until full allocation or in case of any material changes. In addition, Coca-Cola FEMSA will report on relevant impact metrics, such as tons of waste recycled, tons of packaging material reused, acres reforested or preserved, reduction in GHG emission and renewable electricity use, where feasible. Sustainalytics views Coca-Cola FEMSA’s allocation and impact reporting as aligned with market practice.