Second-Party Opinion Download

Sustainalytics is of the opinion that the Woolworths Group Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following: 

Selection of Key Performance Indicator (KPI)

The Woolworths Group Sustainability Linked Bond Framework includes one KPI: Absolute scope 1 and 2 Greenhouse Gas Emissions. Sustainalytics considers the KPI to be adequate based on its materiality, its relevance to the Woolworths Group’s business and its ability to be assessed against external benchmarks. 

Calibration of Sustainability Performance Target (SPT)

Sustainalytics considers the SPT – Scope 1 and 2 emissions reduction in line with the 1.5°C Paris Agreement scenario as verified by the Science Based Targets initiative (SBTi) – to be aligned with the Woolworths Group’s sustainability strategy. Sustainalytics further considers the SPT to be ambitious based on historical performance, as well as in comparison with peers and external contextual benchmarks. 

Bond Characteristics

Woolworths Group will link the bond’s structural characteristics to achievement of the SPT. Failure to achieve the SPT by the target date will trigger an adjustment to the coupon rate, premium payment or other applicable penalty mechanisms. 

Reporting

Woolworths Group commits to report on an annual basis on its performance on the KPI in its sustainability reports as well as on its website. Woolworths Group commits to disclose relevant information that affect KPI performance, such as KPI or SPT reassessments and any adjustments to any baselines or KPI scope. These reporting commitments are aligned with the Sustainability-Linked Bond Principles 2020. 

Verification

Woolworths Group commits to have external limited assurance conducted on its KPI performance as disclosed in its sustainability reports as well as on its website, which is aligned with market expectations.