Second-Party Opinion Download

Sustainalytics is of the opinion that the Mundys’ Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2023 and the Sustainability-Linked Loan Principles 2023. This assessment is based on the following: 

Selection of Key Performance Indicators

The Mundys’ Sustainability-Linked Financing Framework includes five KPIs: i) Absolute scope 1 and 2 emissions; ii) Percentage of Abertis’ and ADR’s “scope 3 related” commitments having reached their SPTs; iii) Percentage of LTO emissions generated by airlines having set a SBTi target within a target date; iv) Equal gender opportunity in the senior and middle management positions in Mundys Group; and v) Percentage of electricity consumption from renewable sources (see Table 1). Sustainalytics considers KPI 1 to be very strong, KPIs 2, 3 and 4 to be strong, and KPI 5 to be adequate based on their materiality, relevance and scope of applicability. 

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Mundys’ sustainability strategy. Sustainalytics considers SPTs 1.1, 1.2 and 3 to be highly ambitious, SPTs 2.1, 2.2, 4.1 and 4.2 to be ambitious and SPT 5 to be moderately ambitious based on their past performance, peer performance and alignment with science. 

Financial Instrument Characteristics

Mundys’ will link the financial or structural characteristics of its sustainability-linked debt instruments to the achievement of the SPTs. A change in the financial or structural characteristics of each instrument will trigger a coupon or margin adjustment, change in the redemption premium or premium payment, as applicable. 

Reporting

Mundys commits to report on its progress on the KPIs in its Integrated Annual Report or a similar report on an annual basis. Mundys also intends to disclose relevant information that affects the progress on the KPIs, such as a recalculation of the baselines for the KPIs, reassessments of the KPIs, a restatement of the SPTs and pro-forma adjustments of baselines or KPI scope. The report will be made available on Mundys’ website. These reporting commitments are aligned with the SLBP and SLLP. 

Verification

Mundys commits to have external limited assurance conducted against each SPT for each KPI and published at least once a year. The verification commitments are aligned with the SLBP and SLLP.