Project Details
Project
PVH Green Financing Framework Second-Party Opinion
Client
PVH Corporation
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
Natural resources/land use management; Pollution prevention and control;
Location
U.S.
Evaluation Date
Mar 2024
Evaluation Summary
Sustainalytics is of the opinion that the PVH Corp. Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Sustainable Materials, and Packaging and Circularity – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 12.
PROJECT EVALUATION AND SELECTION
PVH will establish a Green Finance Committee, which will be responsible for governing and monitoring the selection of credible assets that are aligned with the eligibility criteria under the Framework. The Green Finance Committee will be comprised of representatives from the Treasury, Corporate Responsibility, Supply Chain, Finance, Accounting, and Data Analytics teams. To manage environmental and social risks associated with eligible projects, PVH ensures compliance with its internal risk management processes and policies. Sustainalytics considers the project selection process aligned with market practice.
MANAGEMENT OF PROCEEDS
The Green Finance Committee will manage the proceeds with an internal tracking system. PVH intends to allocate all proceeds to credible assets within 36 months of the issuance. Pending full allocation, the Company may temporarily use unallocated proceeds to repay outstanding indebtedness or will hold the unallocated proceeds in cash or cash equivalents, in accordance with the Company’s normal liquidity practices. This is aligned with market practice.
REPORTING
PVH commits to report on allocation and impact of proceeds on its website on an annual basis until full allocation. The allocation reporting will include category-wide amounts allocated to eligible projects, and the amount pending allocation. In addition, PVH intends to report on relevant impact metrics. Sustainalytics views PVH’s allocation and impact reporting as aligned with market practice.