Second-Party Opinion Download

Project Details


Public Power Corporation Sustainability-Linked Bond Framework Second-Party Opinion (2021)


Public Power Corporation

Project Type

Sustainability Linked Bond or Note

Industry Group


Use of Proceeds




Evaluation Date

Jun 2021

Evaluation Summary

Sustainalytics is of the opinion that the Public Power Corporation Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following: 

Selection of Key Performance Indicators (KPIs)

Public Power Corporation’s Sustainability-Linked Bond Framework includes one KPI: Scope 1 CO2 emissions. Sustainalytics considers the KPI to be very strong as it is highly material to the industry in which Public Power Corporation operates, covers the majority of the Issuer’s greenhouse gas emissions, is clearly defined, relies upon a verified methodology for calculation, and is benchmarkable to both peer performance and science-based trajectories. 

Calibration of Sustainability Performance Targets (SPTs)

Public Power Corporation has established the following SPT: a reduction in Scope 1 CO2 emissions by 57% by 2023. Sustainalytics considers the SPT to be aligned with the Issuer’s sustainability strategy and further considers the SPT to be ambitious based on the Company’s CO2 emissions trend and past performance and relative to its peer performance/targets. Sustainalytics recognizes that the SPT is associated with a significant improvement in emissions performance while acknowledging that the target is not fully aligned with science-based trajectories.  

Bond Characteristics

Public Power Corporation will link the bond’s financial/structural characteristics to the achievement of the SPT such that, should the Company fail to achieve its SPT, the associated coupon rate will increase by 50bps from the next coupon date. If the Company achieves the SPT, there will be no impact on the coupon rate.  


Public Power Corporation commits to report on an annual basis on its performance on the KPIs in an annual report. Public Power Corporation commits to disclose relevant information that could affect the KPI performance. The reporting commitments are aligned with the SLBP.  


Public Power Corporation commits to have external reasonable assurance conducted on its KPI performance on the notification date. This is aligned with market expectations.