Second-Party Opinion Download

Sustainalytics is of the opinion that the Sysco Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The social and green categories eligible for the use of proceeds – (i) Renewable energy, (ii) Energy efficiency, (iii) Clean transportation, (iv) Waste reduction, (v) Sustainable water and wastewater management, (vi) Environmentally sustainable management of living natural resources and land use/Food security, (vii) Aquatic biodiversity conservation/Food security, (viii) Socioeconomic advancement and empowerment – are aligned with those recognized by the Green Bond Principles 2018 and the Social Bond Principles 2018. Overall, the use of any proceeds will, in Sustainalytics’ opinion, have positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically 6, 7, 10, 12, and 14.

PROJECT EVALUATION/SELECTION

Sysco’s projects will be assessed to ensure alignment with the Framework by a committee comprising corporate affairs, treasury, sustainability, and legal team members. Final review and approval will be provided by the VP of Corporate Affairs. Sustainalytics considers this to be in line with market practice.

MANAGEMENT OF PROCEEDS

An equal amount of any bond proceeds will be allocated to eligible projects and separately tracked by the Company’s Treasury Department. Pending allocation, net proceeds will be invested in accordance with the Company’s cash management policies and/or used to repay existing debt of the Company. This is in line with market practice.

REPORTING

Sysco intends to report annually on the allocation of proceeds for each bond issued from one year following any issuance until full allocation. In addition, Sysco expects that its annual reports will include a review of bond proceeds allocation by an independent registered public accounting firm. Sysco also intends to report on project impacts, including some of the following: greenhouse gas emissions avoided, energy saved, water conserved. Sustainalytics views Sysco’s allocation and impact reporting as aligned with market practice.