Project Details
Project
Nokian Tyres Sustainability-Linked-Bond Framework Second-Party Opinion (2023)
Client
Nokian Tyres plc
Project Type
Sustainability Linked Bond or Note
Industry Group
Auto Components
Use of Proceeds
N/A
Location
Finland
Evaluation Date
May 2023
Evaluation Summary
Sustainalytics is of the opinion that the Nokian Tyres Sustainability Linked-Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:
Selection of Key Performance Indicators
The Nokian Tyres Sustainability Linked-Bond Framework defines two KPIs: scope 1 and 2 GHG emissions intensity per tonne of tyre production (tCO2e/t) and scope 3 GHG emissions intensity from product use (tCO2e/t), (see Table 1). Sustainalytics considers both KPIs to be very strong based on their alignment with a material sustainability issue for Nokian Tyres, high scope of applicability and ability to be benchmarked against external science-based trajectories.
Calibration of Sustainability Performance Targets
Sustainalytics considers the SPTs to be aligned with Nokian Tyres’ sustainability strategy. Sustainalytics considers both SPTs to be ambitious based on a comparison with historical performance, targets established by peers and alignment with science-based trajectories.
Bond Characteristics
Nokian Tyres will link the financial characteristics of the sustainability-linked bonds issued under the Framework to the achievement of the SPTs, namely an adjustment in the coupon rate or an increase in the redemption price of the bonds. This is aligned with the Sustainability-Linked Bond Principles 2020.
Reporting
Nokian Tyres commits to report on its performance on the KPIs in a Sustainability-Linked Bond Progress Report which will be published on its website on an annual basis. Nokian Tyres commits to disclose relevant information that may affect the KPI, such as changes to the calculation methodology, the baselines or scope, or if there are significant changes in data due to improved data accessibility. The reporting commitments are aligned with the Sustainability-Linked Bond Principles 2020.
Verification
Nokian Tyres commits to have external limited assurance conducted against each SPT for each KPI at least once a year, which is aligned with the Sustainability-Linked Bond Principles 2020.