Second-Party Opinion Download

Sustainalytics is of the opinion that the Landsec Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible assets, namely (i) green buildings, and projects, namely (ii) renewable energy, (iii) energy efficiency, (iv) sustainable water and wastewater management, (v) waste management and (vi) clean transportation will lead to positive environmental impacts and advance the UN Sustainable Development Goals 6, 7, 9, 11 and 12.

PROJECT EVALUATION/SELECTION

Landsec’s internal process for reviewing, selecting and validating Eligible Green Assets and Projects is managed by its Green Bond Committee (“GBC”), which is comprised of members of the Sustainability Committee and the Group Treasurer. Net proceeds can refinance Eligible Green Assets and Projects delivered up to 36 months before the issuance of Green Bond. The issuer intends to have all proceeds allocated on issuance. Sustainalytics views this process as aligned with market practice.

MANAGEMENT OF PROCEEDS

Landsec’s processes for management of proceeds is coordinated by the GBC. The net proceeds will be deposited in a general account and an amount equivalent to the net proceeds will be earmarked for allocation to the Eligible Green Assets and Projects as selected by the GBC. Pending the allocation or reallocation of the proceeds, Landsec will invest the balance of unallocated proceeds, at its own discretion, in cash and/or cash equivalents and/or other liquid marketable instruments, as per the company’s liquidity management policy. The process is aligned with market practice

REPORTING

Landsec intends to report on impact and allocation of proceeds on its website on an annual basis. The allocation report will include (i) the list of Eligible Green Assets (re)financed, (ii) the aggregated amount of allocation of the net proceeds to the Eligible Green Assets and Projects for each of the Eligible categories, (iii) the proportion of net proceeds used for financing versus refinancing and (iv) the balance of any unallocated proceeds invested in cash and/or cash equivalents. In addition, Landsec is committed to reporting on several impact metrics. Sustainalytics views Landsec’s allocation and impact reporting as aligned with market practice. Sustainalytics further notes that Landsec intends to have third-party verification of its allocation and impact reporting, which is considered best practice.