Second-Party Opinion Download

Sustainalytics is of the opinion that the Hyundai Mobis 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 – Clean Transportation, Renewable Energy and Energy Efficiency Improvement – 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 and 9.

PROJECT EVALUATION AND SELECTION

Hyundai Mobis’ respective business units are responsible for identifying potential green projects, and the Business Planning, Strategy and Finance Division will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. Hyundai Mobis has developed an Environmental and Social Risk Policy to identify and manage ESG risks associated with the eligible projects or assets. Sustainalytics considers the risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Hyundai Mobis’ Finance Division will be responsible for allocating and tracking proceeds to eligible projects using an internal tracking system. Hyundai Mobis intends to allocate all proceeds within three years of issuance. Pending allocation, unallocated proceeds will be temporarily held in cash, cash equivalents or highly stable financial assets that are not associated with carbon-intensive activities. Sustainalytics considers this process to be in line with market practice. 

REPORTING

Hyundai Mobis commits to report on an annual basis on the allocation and impact of proceeds until full allocation of bond proceeds or full drawdown of the loan proceeds. Allocation and impact reporting will be made available publicly for bonds, and for loans, it will be made available to the lenders. Allocation reporting will include the total amount of proceeds allocated to eligible assests, the proportion of net proceeds used for financing versus refinancing and the balance of unallocated proceeds. Hyundai Mobis has confirmed to Sustainalytics that it will disclose and specify the relevant impact indicators for each use of proceeds in the respective documentation for each transaction under the Framework. Sustainalytics encourages Hyundai Mobis to include potential impact indicator(s) for each use of proceeds category in the Framework for increased transparency and to align with market expectations.