Project Details
Project
Eramet Sustainability-Linked Financing Framework Second-Party Opinion (2024)
Client
Eramet S.A.
Project Type
Sustainability Linked Bond or Note; Transition;
Industry Group
Diversified Metals
Use of Proceeds
N/A
Location
France
Evaluation Date
May 2024
Evaluation Summary
Sustainalytics is of the opinion that the Eramet Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2023 and the Sustainability-Linked Loan Principles 2023. This assessment is based on the following:
Selection of Key Performance Indicators
The Eramet Sustainability-Linked Financing Framework defines the following KPIs: i) Absolute scope 1 and 2 GHG emissions; ii) Scope 1 and 2 GHG emissions intensity per tonne of sellable production; and iii) Share of suppliers and customers by emissions having decarbonization targets consistent with the well-below 2°C scenario of the Paris Agreement (see Table 1). Sustainalytics considers KPI 1 as very strong and KPIs 2 and 3 as 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 Eramet’s sustainability strategy. Sustainalytics further considers SPT 1, SPT 2a, SPT 2b, SPT 2c and SPT 3a to be ambitious and SPT 3b to be moderately ambitious based on comparison with past performance, peer performance and science.
Instrument Characteristics
Eramet has linked the instruments’ financial characteristics to the achievement of the SPTs, namely step-up in the bond’s coupon or loan’s margin, or a premium payment. This is aligned with the Sustainability-Linked Bond Principles and Sustainability-Linked Loan Principles.
Reporting
Eramet commits to report on its progress on the KPIs on an annual basis until the maturity of the instruments in either a standalone report or integrated into its Universal Registration Document Report published on its website. Eramet also commits to disclose information for investors and lenders to monitor the SPTs’ level of ambition. This is aligned with the Sustainability-Linked Bond Principles and Sustainability-Linked Loan Principles.
Verification
Eramet commits to have external limited assurance conducted against each SPT for each KPI at least once a year, which is aligned with the Sustainability-Linked Bond Principles and Sustainability Linked Loan Principles.