Green Finance Framework
Wabtec’s Green Finance Framework
Wabtec will utilize green financing instruments to accelerate the development of technologies that enable sustainable value creation for both the passenger and freight rail sectors. A Green Finance Framework (the “Framework”) has been developed in alignment with the company’s sustainability strategy. The structure of the Framework is developed to be in line with the ICMA Green Bond Principles (GBP) 2018, and LMA and APLMA Green Loan Principles (GLP) 2018, and, therefore, consists of five key pillars.
- Use of proceeds
- Process for project evaluation and selection
- Management of proceeds
- External review
Proceeds of green bonds and loans issued by Wabtec will be exclusively allocated to finance eligible assets that are intended to promote the transition to a low-carbon transportation future and meet the sustainable transportation needs of growing cities around the world. These projects will largely target the objective of climate change mitigation by focusing on the efficiency of freight rail systems and public transport, as well as on the provision of energy-efficient customer solution services.
The proceeds raised from the green financing will be allocated to five eligible categories:
- Clean transportation
- Eco-efficient and/or circular economy adapted products, production technologies and processes
- Renewable energy
- Pollution prevention and control
- Energy efficiency
Sustainalytics Second Party Opinion
Wabtec engaged Sustainalytics to review the Wabtec Green Finance Framework and provide a second-party opinion on the Framework’s environmental credentials and its alignment with the Green Bond Principles 2018 (GBP) and the Green Loan Principles 2021 (GLP).
As part of the second-party opinion, Sustainalytics assessed the following:
- The Framework’s alignment with the Green Bond Principles 2018, as administered by ICMA, and the Green Loan Principles 2021, as administered by LMA, APLMA and LSTA1;
- The credibility and anticipated positive impacts of the use of proceeds; and
- The alignment of the issuer’s sustainability strategy and performance and sustainability risk management in relation to the use of proceeds.
Wabtec will report on its green asset portfolio annually in a Green Finance Report, which will cover allocation and impact reporting. Wabtec intends to align the reporting with the portfolio approach described in the ICMA “Handbook – Harmonized Framework for Impact Reporting (April 2020).” Such reports will be prepared until the proceeds of any green financing are fully allocated.
 In addition to the Loan Markets Association, the GLP are also administered by the Asia Pacific Loan Market Association and the Loan Syndications & Trading Association