Second-Party Opinion Download

Sustainalytics is of the opinion that the Gränges 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

Gränges Sustainability-Linked Finance Framework defines the following KPIs: i) KPI 1: Absolute scope 1 and 2 GHG emissions (ktCO2e), and ii) KPI 2: Scope 3 GHG emissions intensity (tCO2e/t) (see Table 1). Sustainalytics considers KPIs 1 and 2 to be very strong based on materiality, relevance, scope of applicability and comparability to external benchmarks.

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Gränges’ sustainability strategy. Sustainalytics assessed the SPTs as follows, based on historical performance, peer targets and science-based trajectories, as applicable: SPTs 1a, 1b and 1c - highly ambitious and SPTs 2a, 2b and 2c - ambitious.

Financial Characteristics

Gränges has linked the financial characteristics of the sustainability-linked instruments to the achievement of the SPTs which will trigger an annual margin adjustment mechanism for loans and a coupon step-up or a step-up mechanism on the redemption price for bonds.

Reporting

Gränges commits to report on an annual basis on its performance on the KPIs in its report on its website. The reporting commitments are aligned with the SLBP and SLLP.

Verification

Gränges commits to have external limited assurance conducted against each SPT for each KPI at least once a year, which is aligned with the SLBP and SLLP.