Second-Party Opinion Download

Sustainalytics is of the opinion that the Johnson Controls Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles (2018) and Green Loan Principles (2020). This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Eco-efficient and/or circular economy adapted products, production technologies and processes, Green Buildings, Pollution Prevention and Control, Sustainable Water and Wastewater Management, Clean Transportation, Renewable Energy – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 9, and 11.

PROJECT EVALUATION/SELECTION

Johnson Controls’ Green Finance Committee will oversee evaluating and selecting projects that are compliant with the Green Finance Framework eligibility criteria. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Johnson Controls will allocate net proceeds to an Eligible Green Project Portfolio. Pending allocation, unallocated proceeds will be held in cash, cash equivalents and/or treasury securities. This is in line with market practice.

REPORTING

Johnson Controls intends to report allocation on a portfolio basis on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible projects, balance of unallocated proceeds and the amount or percentage of new financing and refinancing. In addition, Johnson Controls is committed to reporting on relevant impact metrics, where feasible. Sustainalytics views Johnson Controls’ allocation and impact reporting as aligned with market practice.