Second-Party Opinion Download

Sustainalytics is of the opinion that the JAB Holding Company Sustainability Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:

Selection of Key Performance Indicators (KPIs)

JAB Holding Company Sustainability-Linked Bond Framework includes three KPIs: (i) Absolute scope 1 and 2 GHG emissions, (ii) Percentage of portfolio companies, by invested capital at fair value, that have set SBTi approved targets, and (iii) Percentage of portfolio companies that have at least 30% female representation in their non-executive board of directors (see Table 1). Sustainalytics considers all three KPIs to be strong based on their materiality, relevance, scope of applicability and adequacy to external benchmarking.

Calibration of Sustainability Performance Targets (SPTs)

Sustainalytics considers the SPTs to be aligned with JAB Holding Company’s sustainability strategy. Sustainalytics considers SPT 1 and SPT 2 to be highly ambitious and SPT 3 to be ambitious based on past performance, peer performance and alignment with science.

Bond Characteristics

JAB Holding Company will link the financial characteristics of its sustainability-linked bonds to the achievement of the SPTs, which may take the form of a coupon adjustment, a margin adjustment or a premium payment. In the case of a trigger event, the premium payment will be tied to the Company’s progress on the selected KPIs and SPTs. Sustainalytics considers this process to be aligned with the Sustainability-Linked Bond Principles 2020.

Reporting

JAB Holding Company commits to report on its performance on the KPIs within its integrated Annual Report, on its website and on an annual basis. JAB Holding Company also commits to disclose relevant information that may affect the KPI or that may enable investors to monitor the progress and ambition of the selected KPIs and SPTs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles.

Verification

JAB Holding Company commits to have external limited assurance conducted on its KPI performance at the communicated SPT deadline at least once a year, which is aligned with market expectations.