Second-Party Opinion Download

Sustainalytics is of the opinion that the NORD/LB Luxembourg S.A. Covered Bond Bank (“NORD/LB CBB”) 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 use of proceeds categories (Renewable Energy, and Transmission and Energy Storage) are recognized by the Green Bond Principles 2018 as impactful. Sustainalytics believes that the eligible projects in this category will contribute to reducing GHG emissions. lead to positive environmental impacts and advance the UN Sustainable Development Goal 7: Affordable and Clean Energy and 13: Action to combat climate change and its impact

PROJECT EVALUATION/SELECTION

NORD/LB CBB’s internal process in evaluating and selecting projects is handled by the NORD/LB CBB Green Bond Committee (the “Committee”). The Committee is responsible for ensuring projects that are selected are in line with the eligibility criteria set within the Framework. The Committee is responsible for adding/removing projects from the eligible project portfolio and/or any necessary changes/updates to the Framework. The Committee meets at least annually. This process is aligned with market practice.

MANAGEMENT OF PROCEEDS

NORD/LB CBB’s processes for management of proceeds is managed by the Committee. Proceeds will be allocated using a portfolio approach. The Committee will strive to ensure that eligible assets meet or exceed the outstanding volume of green debt and will replace projects that fall out of eligibility with new assets immediately. This process is aligned with market practice.

REPORTING

NORD/LB CBB intends to prepare regular reports on both allocation and impact along with an annual NORD/LB Group Sustainability Report, all of which will be made available on the website. Allocation reporting will include a full breakdown of allocation on a project portfolio basis, country and currency as well as financing vs refinancing, current volume and financing share, loan term/maturity and unallocated amounts. NORD/LB CBB will report on relevant impact metrics. This is in line with market practice. Sustainalytics also notes that NORD/LB CBB will seek third-party verification of its allocation reporting, which is viewed as a best practice approach.