Second-Party Opinion Download

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

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green and Energy-Efficient Buildings, Renewable Energy and Clean Transportation – are aligned with those recognized by the Green Bond Principles and 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

Kesko’s Green Finance Committee will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The Committee consists of the CFO, Head of Sustainability and Group Treasurer. Kesko has a process in place to address environmental and social risks associated with the projects financed. Sustainalytics considers the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

The Green Finance Committee will also oversee the management and allocation of net proceeds and will track the proceeds using a Green Register. Kesko intends to have green project allocation that exceeds the balance of net proceeds from outstanding green debt, and in other cases, Kesko intends to allocate proceeds within 24 months of the respective issuance date. Pending full allocation, net proceeds will be temporarily held in Kesko’s general liquidity reserve and managed in accordance with the Company’s financial policy. Sustainalytics further notes that the temporary use of proceeds will be in line with the Framework’s exclusion criteria. This is in line with market practice. 

REPORTING

Kesko commits to report on the allocation and impacts of proceeds via a Green Bond Report on an annual basis until full allocation. Reporting will be made available to investors. In addition, Kesko intends to report on relevant impact metrics. Sustainalytics views Kesko’s reporting commitments to be aligned with market practice.