Second-Party Opinion Download

Sustainalytics is of the opinion that the Municipality of Linköping Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. The eligible categories are: Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Clean Transportation, Sustainable Water and Wastewater Management, Climate Change Adaptation, Circular economy Adapted Products, Production Technologies and Processes and Design, Green Buildings, and Access to Essential Services. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7, 9, 11, 12, and 13.  

PROJECT EVALUATION AND SELECTION

The Municipality of Linköping has established a committee that is responsible for the project evaluation and selection process in accordance with the eligibility criteria under the Framework. In addition to its mandates, the Municipality has adopted policies, programmes, guidelines and processes, and relies on compliance with applicable regional laws and regulations to manage environmental and social risks associated with eligible projects. Sustainalytics considers the project selection process and the risk management system to be in line with market practice. 

MANAGEMENT OF PROCEEDS

The Municipality of Linköping’s Finance department will be responsible for the allocation and tracking of proceeds using a sustainability register. The Municipality intends to allocate proceeds to eligible projects within one year of issuance. Pending full allocation, proceeds will be temporarily placed in the Municipality’s liquidity reserve and be managed in line with its financial policy. This is in line with market practice. 

REPORTING

The Municipality of Linköping commits to report on the allocation of proceeds and corresponding impact through an annual investor letter that will be made available to the public. Allocation and impact reporting may include details such as total amount of outstanding sustainability bonds, share of proceeds used for new financing versus refinancing, a breakdown of green and social projects by project category, descriptions of selected green and social projects financed, and share of unallocated proceeds. Sustainalytics views the Municipality’s allocation and impact reporting as aligned with market practice.