By incorporating the European (EU) taxonomy into its new Green Finance Framework (GFF), the Volkswagen Group is making investments in company-issued green debt instruments more attractive, more transparent and more reliable for to investors. activities. This new green financing mechanism (GFF) establishes a link between the Group’s decarbonization objectives and its financing strategy. Only investment costs (expenses related to the development of the company capitalized on the balance sheet, investments for the acquisition of tangible fixed assets) intended for electric vehicles (BEV) are aligned in the European (EU) taxonomy is considered under the new Green Business Finance (GFF) scheme. Investments eligible for the system are reviewed as part of the certification of the consolidated annual accounts by the independent auditor. The audit of investments will be conducted according to the principle of reasonable assurance on the honesty and regularity of the data appearing in the accounting statements. Investors will thus benefit from a high level of transparency when verifying the allocation of financial resources released.
Arno Antlitz said: “By establishing a new green financing framework within the Group, we are strengthening Volkswagen’s position as a provider of sustainable financial instruments and working towards the sustainable development of our company. Along with growing our investments in the electrification of our offering, we intend to increase the share of our green debt instruments in our financing mix. In this way, we contribute to the development of a financial market focused on sustainability. »
The Volkswagen Group continues its commitment to sustainable development by focusing investments financed under the GFF scheme exclusively on electric vehicles. Investment costs related to plug-in hybrid vehicles (PHEV) or thermal engine vehicles are completely excluded. So the company continues on the path it started in March 2020, when the company’s first green finance framework was made public. Volkswagen issued Green Bonds for a total amount of 3.5 billion euros under the previous sustainable financing scheme. The new Corporate Green Finance Framework (GFF) will allow the Volkswagen Group to issue various green debt instruments, including senior unsecured green bonds, subordinated junior green bonds, green semi-bond credits (private placement ), and get a green loan.
The Volkswagen Group will report at least once a year on the allocation of net proceeds from debt instruments issued under the GFF, as well as the environmental impact of electric vehicles (BEVs) where the expenditure is allocated. corresponding investment plans, in line with the GFF. The allocation of these products and the environmental impact of the financed products will be verified by life cycle tests certified by external auditors who will evaluate the environmental impact of electric vehicles (BEV) in their entire life cycle of life and at all stages of the value creation chain. The analysis includes all parts of the product flow: acquisition of raw materials, production of materials, work processes at suppliers and internal processes at the company’s production sites, part of use including vehicle emissions and the energy supply required for its operation. , and finally recycling the vehicle at the end of its life cycle.
Sustainalytics, a world-renowned agency specializing in the extra-financial rating of companies in terms of sustainability, independently assesses the securities issued by the company by issuing an opinion (Second Party Opinion) confirming compliance with the principles applicable to green bonds (2021) of the International Capital Market Association (ICMA) and the Principles for Green Lending (2021) of the Loan Market Association (LMA).