Second-Party Opinion Download

Sustainalytics is of the opinion that the Polenergia S.A. Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy and Energy Efficiency – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.

PROJECT EVALUATION AND SELECTION

Polenergia has established an ESG Committee that will be responsible for evaluating and selecting eligible projects, together with the Sustainable Development Coordinator. Polenergia has internal processes to address environmental and social risks associated with the eligible assets. Sustainalytics considers the risk management process to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

The ESG Committee will be responsible for the management and allocation of proceeds. Polenergia will track the proceeds using internal IT systems and manage them using a portfolio approach. Polenergia intends to fully allocate the net proceeds within 36 months of issuance. Pending full allocation, proceeds will be temporarily invested in short-term instruments with high liquidity, such as bank deposits with maturity shorter than 90 days. This is in line with market practice.

REPORTING

Polenergia will report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include: i) the amount of net proceeds allocated; ii) the amount of net proceeds allocated per use of proceeds category; iii) the share of financing and refinancing; iv) the balance of unallocated proceeds; v) a list of eligible projects financed; and vi) a list of eligible projects financed meeting the EU Taxonomy criteria. In addition, Polenergia intends to report on relevant impact metrics. Sustainalytics views Polenergia’s allocation and impact reporting as aligned with market practice.