Second-Party Opinion Download

Sustainalytics is of the opinion that the Epiroc Sustainability-Linked Finance Framework aligns with the Sustainability-Linked Bond Principles 2024 and Sustainability-Linked Loan Principles 2023. This assessment is based on the following:

Selection of Key Performance Indicators

The Epiroc Sustainability-Linked Finance Framework defines the following KPIs: i) KPI 1: Absolute scope 1 and 2 GHG emissions; ii) KPI 2: Absolute scope 3 GHG emissions; and iii) KPI 3: Emission-free product offering for the full product range. Sustainalytics considers KPIs 1 and 2 to be very strong and KPI 3 to be strong based on their materiality, relevance, scope of applicability and comparability to external benchmarks.

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Epiroc’s sustainability strategy. Sustainalytics further considers SPTs 1.1 to 1.3 to be ambitious, SPTs 2.1 to 2.3 and SPTs 3.1 to 3.3 to be highly ambitious based on the comparison with past performance, peer performance and alignment with science, as applicable.

Financial Instrument Characteristics

Epiroc has linked the financial characteristics to the achievement of the SPTs. Failure to achieve these SPTs will constitute a trigger event and will lead to a step-up in the coupon rate or an increase in the redemption price.

Reporting

Epiroc commits to report on an annual basis on its performance on the KPIs in its Sustainability-Linked Finance Progress Report. Epiroc commits to disclose relevant information enabling investors to monitor the level of ambition of the SPTs.

Verification

Epiroc commits to have an external limited assurance conducted against each SPT for each KPI at least once a year which will be made publicly available on Epiroc’s website.