Second-Party Opinion Download

Selection of Key Performance Indicators

The Rikshem Sustainability Linked Bond Framework includes four KPIs (see Table 1). Sustainalytics considers KPIs 1 and 2 to be adequate, KPI 3.1 to be strong and KPI 3.2 to be adequate based on their materiality, relevance, scope of applicability and adequacy to external benchmarking.

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Rikshem’s sustainability strategy. Sustainalytics further considers all the SPTs to be moderately ambitious, based on comparison with past performance, peer performance and science-based trajectories, as applicable.

Bond Characteristics

Rikshem will link the financial and structural characteristics of the sustainability-linked bonds issued under the Framework to its performance against the SPTs and its reporting commitments under the Framework. Non-achievement of an SPT or noncompliance with its reporting commitments will result in a coupon step-up or a premium payment. This is aligned with the Sustainability-Linked Bond Principles 2023.

Reporting

Rikshem commits to report on an annual basis on its progress on the KPIs in a Sustainability-Linked Bond Progress Report published on its website. Rikshem also commits to disclose relevant information relating to recalculations of the KPIs and other information on its decarbonization strategy and governance that has impacts on the KPIs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles 2023.

Verification

Rikshem commits to have external limited assurance conducted against each SPT for each KPI at least once a year, which is aligned with the Sustainability-Linked Bond Principles 2023.