Second-Party Opinion FS Green Bond Framework

The 2024 version represents a significant evolution from the 2022 Annual Review. The older version was a project-by-project evaluation of specific green bond issuances, while the newer version is a comprehensive Second-Party Opinion on the entire FS Green Bond Framework itself. The 2024 version expands use of proceeds categories, references updated standards (Green Bond Principles 2021 and Green Loan Principles 2023), and formalizes governance and reporting commitments with specific timelines. The framework now includes explicit connection to UN SDGs and strengthens environmental and social risk management processes.

• expanded Use of Proceeds — Expanded from bioenergy and sustainable forestry to include 'Renewable Energy and Environmentally Sustainable Management of Living Natural Resources and Land Use' as overarching categories
• added Standards Alignment — Added explicit reference to Green Bond Principles 2021 and Green Loan Principles 2023 as guiding standards
• added Standards Alignment — Added alignment with UN Sustainable Development Goals (SDGs 7 and 15) as explicit framework objectives
• added Management of Proceeds — Added specific 24-month allocation timeline requirement for proceeds from each issuance
• added Management of Proceeds — Formalized procedures for interim deployment of unallocated funds to low-risk commitments or debt repayment
• clarified Governance — Explicitly designated sustainability and commercial departments for project selection, and finance department for proceeds management
• expanded Reporting — Added commitment to annual impact metrics reporting in addition to allocation reporting
• added Environmental and Social Risk Management — Introduced formal environmental and social risk management processes applicable to all eligible categories