Project Details
Project
Singapore Telecommunications Limited Sustainability-Linked Bond Framework Second-Party Opinion (2021)
Client
Singapore Telecommunications Limited
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Singapore
Evaluation Date
Oct 2021
Evaluation Summary
Sustainalytics is of the opinion that the Singapore Telecommunications Limited Group (“Singtel Group”) Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:
Selection of Key Performance Indicators (KPIs)
The Singtel Group Sustainability-Linked Bond Framework includes the following KPIs: (i) Scope 1 and 2 GHG Emissions for the Singtel Group, and (ii) Scope 1 and 2 GHG Emissions for Singtel Optus Pty Limited (Optus), a wholly owned subsidiary of Singtel Group – “Issuers” herein refers to Optus and the Singtel Group jointly. Sustainalytics considers the KPIs to be strong based on their materiality, their scope of applicability, their relevance to the Issuers’ businesses, and their ability to be benchmarked.
Calibration of Sustainability Performance Targets (SPTs)
Sustainalytics considers the SPTs to be aligned with the Issuers’ sustainability strategies. Sustainalytics notes that the SPTs: i) go beyond business as usual, ii) align with industry peers’ targets, and iii) align with the well-below 2°C climate scenario.
Bond Characteristics
The Issuers will link the bonds’ financial structure to achievement of the SPTs, namely by adjusting the coupon rate or premium upon maturity when a particular SPT specified in the SLB issuance is not met by the target observation date. Sustainalytics views these characteristics positively.
Reporting
The Issuers commit to report on their performance on the KPIs on an annual basis in the Singtel Group’s Sustainability Report, which is published on the Group’s website. The Issuers also commit to disclose relevant information that affect KPI performance, such as any KPI reassessments and baseline or scope adjustments, where relevant. The reporting commitments are aligned with the Sustainability-Linked Bond Principles.
Verification
The Issuers commit to have external limited assurance conducted on their KPI performance at the communicated SPT deadline, which is aligned with market expectations.