Second-Party Opinion Download

Tegeta Motors LLC has developed the Sustainability-Linked Financing Framework, dated October 2025, under which it intends to issue sustainability-linked bonds. The financial characteristics of the sustainability-linked bonds, namely coupon step-up, step-down or an increase in premium, will be tied to the achievement of the sustainability performance targets (SPTs) for three key performance indicators (KPIs): i) scope 1 GHG emissions intensity; ii) scope 2 GHG emissions intensity; and iii) avoided emissions from use of sold and serviced products. We have assessed the KPIs as follows:

KPIs 1 and 2 are Adequate given that they: i) represent an indirect measure of material environmental issues; ii) reflect a high scope of applicability when assessed together with KPI 3; iii) follow a clear and consistent methodology that is externally defined; and iv) do not lend themselves to be compared against external contextual benchmarks. KPI 3 is Adequate given that it: i) represent an indirect measure of material environmental issues; ii) reflects a high scope of applicability; iii) follows a clear and consistent methodology that is not externally defined; and iv) does not lend itself to be compared against external contextual benchmarks. In addition, all SPTs align with the Group’s sustainability strategy.

SPTs 1A, 1B, 2A, and 2B are Moderately Ambitious given that they are: i) below historical performance but represent a continuous material improvement over the baseline; ii) above the targets set by peers; and iii) not comparable against external science-based references. SPTs 3A and 3B are Moderately Ambitious given that they are: i) above historical performance but represent a limited improvement in performance given the continued increase in absolute scope 3 emissions; ii) above targets set by peers; and iii) not comparable with an external science-based reference.

We have assessed the Framework as Aligned with the Sustainability-Linked Bond Principles 2024.