Second-Party Opinion Download

Sustainalytics is of the opinion that the Volkswagen Aktiengesellschaft 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 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds, Clean Transportation, is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 9 and 11.

PROJECT EVALUATION /SELECTION

Volkswagen Group’s Green Finance Committee will evaluate and select eligible projects in line with the eligibility criteria. Volkswagen’s environmental and social risk management processes are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Volkswagen Group’s Green Finance Committee will be responsible for the management and allocation of proceeds to eligible projects. The proceeds will be tracked through Volkswagen’s external and internal reporting systems. Volkswagen Group intends to reach full allocation at the time of issuance or funding date of a loan agreement and latest within one year after the issuance. Pending full allocation, unallocated proceeds may be temporarily held in cash or bank deposits. This is in line with market practice.

REPORTING

Volkswagen Group intends to report on the allocation of proceeds and corresponding impact in its green finance report which will be published on its website on an annual basis until full allocation. Allocation reporting will include the total amount allocated to the Eligible Green Portfolio, the share of financing versus refinancing, the geographical distribution of eligible projects by region and the balance of unallocated proceeds, if applicable. In addition, Volkswagen Group is committed to reporting on relevant impact metrics. Sustainalytics views Volkswagen Group’s allocation and impact reporting as aligned with market practice.