Second-Party Opinion Download

Sustainalytics is of the opinion that the Telecom Armenia Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2024. This assessment is based on the following:

Selection of Key Performance Indicators

The Telecom Armenia Sustainability-Linked Bond Framework defines the following KPIs: i) KPI 1a: Absolute scope 1 and 2 GHG emissions; ii) KPI 1b: Absolute scope 3 GHG emissions (see Table 1). Sustainalytics considers the KPIs chosen to be very strong based on materiality, relevance, scope of applicability and comparability to external benchmarks.

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Telecom Armenia’s sustainability strategy. Sustainalytics further considers the SPTs to be highly ambitious based on comparison with targets set by peers and science-based trajectories.

Bond Characteristics

Telecom Armenia will link the financial characteristics of its sustainability-linked bonds to the achievement of all SPTs and its reporting commitments. Failing to achieve all SPTs or complying with the reporting commitments will trigger a coupon adjustment or a premium payment, as applicable.

Reporting

Telecom Armenia commits to report on an annual basis on its performance on the KPIs in its annual sustainability report, including relevant information that may affect the KPIs’ progress, enabling investors to monitor the level of ambition of the SPTs.