Project Details
Project
Husqvarna Green Finance Framework Second-Party Opinion (2024)
Client
Husqvarna AB
Project Type
Green Bond/Loan
Industry Group
Machinery
Use of Proceeds
Eco-efficient products; Green buildings; Clean transport; Renewable energy;
Location
Sweden
Evaluation Date
Jan 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Low-carbon Products and Solutions, Green Buildings, Clean Transportation, 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 and 11.
PROJECT EVALUATION AND SELECTION
Husqvarna’s Green Finance Committee, consisting of representatives from the Treasury, Sustainability, Investor Relations and Finance teams, will be responsible for the evaluation and selection of assets and projects in line with the eligibility criteria. The committee will also undertake environmental and social risk assessments that adhere to the EU Taxonomy criteria. Sustainalytics considers the risk management systems to be adequate and the project evaluation and selection 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 its internal Green Finance Register. Husqvarna intends to allocate all the proceeds within two years of issuance. Pending full allocation, proceeds will be temporarily held in cash or other short term liquid instruments. Sustainalytics considers this process to be in line with market practice.
REPORTING
Husqvarna commits to report on the allocation of proceeds and corresponding impact in its Green Finance Report, which will be published on its website on an annual basis as long as the green finance instruments are outstanding. Allocation reporting will include the amount of proceeds allocated to eligible green assets, the list of eligible green assets, the share of financing and refinancing and the balance of unallocated proceeds. Sustainalytics considers Husqvarna’s allocation and impact reporting commitments to be aligned with market practice.