Project Details
Project
KPN Green Finance Framework Second-Party Opinion (2024)
Client
Koninklijke KPN N.V.
Project Type
Green Bond/Loan
Industry Group
Telecommunication Services
Use of Proceeds
Energy efficiency; Clean transport;
Location
Netherlands
Evaluation Date
May 2024
Evaluation Summary
Sustainalytics is of the opinion that the KPN Green Finance 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 – Energy Efficiency, Circular Economy and Clean Transportation – 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 SDGs 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
KPN’s Green Finance Committee is responsible for the evaluation and selection of eligible projects, and for monitoring the identification and mitigation of material environmental and social risks associated with the eligible projects. Sustainalytics considers these risk management systems to be adequate, and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
KPN’s Treasury department will manage and track the allocation of proceeds using a dedicated green registry. KPN commits to fully allocate proceeds within 36 months of issuance or borrowing of green finance instruments. Unallocated proceeds will be temporarily held or invested in KPN’s treasury liquidity portfolio. This is in line with market practice.
REPORTING
KPN intends to report on the allocation of proceeds and corresponding impacts on an annual basis until full allocation and will make the reports publicly available on its website. Allocation reporting will include the percentage of proceeds allocated, the outstanding volume of green finance instruments, the balance of unallocated proceeds, and the share of new financing and refinancing. The impact report will include the energy efficiency gained in GWh per Gb/s and the percentage of modems and TV set-top boxes reused, amongst others. Sustainalytics views KPN’s allocation and impact reporting commitments as aligned with market practice.