Second-Party Opinion Download

Sustainalytics is of the opinion that the Husqvarna Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Low Carbon Products and Solutions, Green Buildings, Clean Transportation and Renewable Energy – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11 and 12.

PROJECT EVALUATION AND SELECTION

Husqvarna’s Green Finance Committee, consisting of representatives from the Treasury, Sustainability, Investor Relations and Finance teams, is responsible for evaluating and selecting potential assets and projects in line with the Framework’s eligibility criteria. The committee will also undertake environmental and social risk assessments that adhere to the Do No Significant Harm (DNSH) and Minimum Safeguards criteria of the EU Taxonomy. Sustainalytics considers the project selection and evaluation process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Husqvarna’s Green Finance Committee will be responsible for the management of proceeds and will track the allocation of proceeds using an internal green finance register. Husqvarna intends to allocate proceeds as soon as feasible and reach full allocation within two years of issuance. Pending full allocation, proceeds will be temporarily held in cash in accordance with the Company’s liquidity management policy. Sustainalytics considers this process to be in line with market practice.

REPORTING

Husqvarna will report on the allocation of proceeds and corresponding impact in its annual Green Finance Report, which will be published on its website for as long as the green finance instruments are outstanding. Allocation reporting will include the amounts of proceeds allocated to eligible assets and projects, a list of all eligible assets and projects, the share of financing versus refinancing and the balance of unallocated proceeds. Sustainalytics views Husqvarna’s allocation and impact reporting as aligned with market practice.