Second-Party Opinion Download

Sustainalytics is of the opinion that the Public Power Corporation SustainabilityLinked 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 chosen to be very strong as it is highly material to the industry in which PPC 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 PPC’s Scope 1 CO₂ emissions by 40% by 2022. 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 also 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 SPTs 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.

Reporting

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.

Verification

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