Project Details
Project
RDM Group Sustainability-Linked Financing Framework Second Party Opinion (2021)
Client
RDM Group
Project Type
Sustainability Linked Bond or Note
Industry Group
-
Use of Proceeds
-
Location
Italy
Evaluation Date
Nov 2021
Evaluation Summary
Sustainalytics is of the opinion that the RDM Group Sustainability Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:
Selection of Key Performance Indicators (KPIs)
RDM Group’s Framework includes three KPIs: Scope 1 and 2 GHG emissions intensity, proportion of waste sent for recovery, and wastewater discharge intensity (see Table 1). Sustainalytics has assessed all three KPIs as strong since they follow clear and consistent methodologies with externally recognized definitions. KPIs 1 and 2 are considered direct measures of performance on material environmental issues; KPIs 1 and 3 can be benchmarked against external contextual benchmarks.
Calibration of Sustainability Performance Targets (SPTs)
Sustainalytics considers the SPTs to be aligned with the Issuer’s sustainability strategy. Sustainalytics has assessed SPT 1 as ambitious, SPT 2 as highly ambitious and SPT 3 as moderately ambitious. All SPTs represent improvements on historical performance. SPT 1 is further determined to be aligned with science-based decarbonization trajectories.
Bond Characteristics
RDM Group will link the financial characteristics of the instruments issued under the Framework to the achievement of the SPTs at the target observation date. The financial characteristics may include a coupon rate step-up provision or a premium on redemption value.
Reporting
RDM Group commits to report annually on its performance relating to the KPIs on its website, disclosing any relevant information that affects KPI performance. The reporting commitments are aligned with the SLBP.
Verification
RDM Group commits to have external limited assurance conducted on its sustainability reporting, which includes KPI performance at the communicated SPT deadline, which is aligned with market expectations.