Investors can participate in Daimler's sustainability goals. At the same time, Daimler uses sustainable financial instruments such as green bonds and green loans to finance significant future investments.
Daimler will use the net proceeds from the green financing instruments, for example, for the development and production of emission-free vehicles with battery electric drive (BEV) and fuel cell electric drive (FCEV). The use of the proceeds and the climate effects of the projects are published annually in a Green Finance Investor Report.
Our Green Finance Framework in detail
The Green Finance Framework summarizes the principles according to which Daimler will use green financing instruments in the future. The framework was evaluated by an experienced external expert. These framework conditions apply to a wide range of debt instruments such as green bonds, green notes, green commercial bills and green loans. The proceeds will only be used to finance projects that directly pave the way to a low-carbon and climate-resilient society.?
The structure of the Daimler Green Finance Framework is consistent with both the ICMA Green Bond Principles (GBP) 2018 and the LMA and APLMA Green Loan Principles (GLP) 2018. Daimler will apply best practices in relation to green bonds and green loans in line with evolving market standards and the entry into force of the EU classification of environmentally sound economic activities (taxonomy) and the EU Green Bond Standard. The Swedish bank SEB acted as a consultant for the structuring of the green financing.
With CICERO Shades of Green, Daimler has commissioned a leading independent expert for the research-based assessment of Green Finance Frameworks with the review of its regulations. The Daimler Framework received the highest rating from CICERO with "Dark Green".
?Daimler will allocate the net proceeds from the green financing instruments to various projects. This ranges from research and development activities for emission-free vehicles, their production and the production of the respective drives to the development and construction of a charging infrastructure. The proceeds from the green financing can also be used to modernize and upgrade production facilities and build new factories for emission-free vehicles and their drives, as well as to build up the recycling of batteries and cells. Another category for eligible projects is investment in reducing energy and other resources, building renewable energy, preventing and reducing waste, and reusing and recycling materials.
Daimler will submit an annual Green Finance Investor Report in order to provide investors and the public with transparent information about financial indicators and the climate effects of the financed projects. Examples of impact indicators and key figures that can be included in the report in the “Clean Transportation” category are the number of emission-free vehicles sold (BEV, FCEV) and the reduced CO2 emissions in the usage phase. The annual reduction in CO2 emissions is an option in the “Energy Efficiency” category.
With the Green Finance Framework, we are preparing for the use of sustainable financing instruments. This gives us access to further liquidity for our future investments and at the same time opens up new opportunities for green investors.