Green Finance Framework marks the next milestone of Daimler's sustainable business strategy
STUTTGART, Germany, June 18, 2020 /PRNewswire/ --
-- Green Finance Framework lays foundation for a broad range of sustainable
finance instruments such as green bonds and green loans
-- Daimler meets the increasing investor demand for sustainable investments
and opens an additional funding source for Daimler's sustainable
business strategy
-- Green finance instruments allow investors to invest in green projects
like the development and production of electric vehicles
-- Highest rating, "Dark Green" from CICERO, a leading provider of
independent, research-based evaluations of green finance frameworks
-- Next milestone will be the issuance of a green bond near term
In line with its sustainable business strategy Daimler AG (ticker symbol DAI) lays the foundation for sustainable financing to issue a broad range of sustainable finance instruments such as green bonds and green loans. With a Green Finance Framework the company is enabling investors to participate in the ambitious sustainability goals and creating new opportunities to finance significant upfront investments towards CO(2)-neutral technologies and services.
Sustainability@Daimler
Daimler's approach to sustainability means generating economic, environmental and social value added for all stakeholders: customers, investors, employees, business partners and society as a whole. Climate protection, air quality, human rights and resource preservation are part of the core action fields in Daimler's group-wide sustainable business strategy.
In accord with the Paris Climate Agreement, Mercedes-Benz Cars wants to offer a completely CO(2)-neutral new-vehicle fleet by 2039 under the heading "Ambition2039". This includes topics such as raw materials and the supply chain, the production of the vehicles, their use phase and recycling concepts. One milestone along this path is the interim goal of having five all-electric passenger cars and 20 plug-in hybrid variants on the market by the end of 2020.
The Daimler Trucks & Buses division aims to offer only new vehicles that are CO(2)-neutral in driving operation ("tank-to-wheel") in the major markets of Europe, Japan and North America by 2039. Mercedes-Benz Vans is following the Mercedes-Benz Cars strategy for its vans for private use and the strategy of Daimler Trucks & Buses for its vans for commercial use.
Green Finance Framework
The Green Finance Framework is a summary of principles under which Daimler will utilize green financing instruments in the future. It applies to a broad range of debt instruments such as green bonds, green promissory notes (Schuldscheine), green commercial paper and green loans. Due to Daimler's frequent and standardized public reporting, the company is creating transparency on the positive climate effects of the financed projects.
Daimler follows the best practices in relation to green bonds and loans as market standards develop and as the EU classification of environmentally sustainable economic activities (taxonomy) and the EU Green Bond Standard enter into force. Swedish Bank SEB has acted as green structuring advisor.
Daimler will allocate the net proceeds from the green financing instruments to develop and produce zero-emission vehicles such as battery-electric (BEV) and fuel-cell electric vehicles (FCEV), for example. More than 50% of the proceeds will be allocated to the category "Clean Transportation". Furthermore, proceeds may be used, for example, to upgrade manufacturing facilities or construct new facilities for the production of zero-emission vehicles and their drivetrains, and to establish the recycling of batteries and fuel cells.
Lighthouse Projects
Next year the all-new EQS from Mercedes-Benz will enter the showrooms. This all-electric vehicle will be based on a newly developed, dedicated battery electric vehicle architecture. The electric flagship model from Mercedes-Benz will drive off the production line in the new "Factory 56" in Sindelfingen, about 20 kilometers from the Daimler headquarters in Stuttgart. This ultramodern production facility is consistently applying innovative technologies and processes in vehicle production that are digital, flexible and sustainable. The EQS will be partially equipped with CO(2)-neutral battery cells. The entire battery package will be manufactured in Mercedes-Benz's global battery production network.
The large-scale development, production and commercialization of fuel-cell systems for heavy-duty commercial vehicles and other applications is planned in a Joint Venture with Volvo Trucks. The common goal is for both companies to offer heavy-duty vehicles with fuel-cells for demanding long-haul applications in series production in the second half of the decade.
"Dark Green" shading in second-party opinion from CICERO
Daimler has consulted CICERO Shades of Green, a leading provider of independent, research-based evaluations of green finance frameworks to assess the environmental robustness of its framework. Daimler's framework obtained the highest rating, "Dark Green", from CICERO. The Second-Party Opinion from CICERO is available on Daimler's website.
Daimler will provide a Green Finance Investor Report on an annual basis until full allocation of the proceeds, and thereafter in the case of any material change to allocation, in order to create transparency for investors and the public on the financed projects. Examples of indicators and metrics could be, for the "Clean Transportation" category, the number of zero-emission vehicles (BEVs, FCEVs) sold or for "Energy Efficiency", the reduction of annual CO(2) emissions.
The next milestone will be the issuance of a green bond under the new Green Finance Framework, which is planned near term.
Further information on green financing and sustainability are available here:
https://www.daimler.com/investors/refinancing/green-finance/
https://www.daimler.com/sustainability/spurwechsel/
Further information from Daimler is available at:
www.media.daimler.com and www.daimler.com
This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates and tariff regulations; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
Daimler at a glance
Daimler AG is one of the world's most successful automotive companies. With its Mercedes-Benz Cars & Vans, Daimler Trucks & Buses and Daimler Mobility divisions, the Group is one of the leading global suppliers of premium cars and one of the world's largest manufacturer of commercial vehicles. Daimler Mobility offers financing, leasing, fleet management, investments, credit card and insurance brokerage as well as innovative mobility services. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Daimler sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Daimler continues to invest systematically in the development of efficient powertrains - from high-tech combustion engines and hybrid vehicles to all-electric powertrains with battery or fuel cell - with the goal of making locally emission-free driving possible in the long term. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts. Daimler regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Daimler sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and South America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable premium automotive brand (source: Interbrand study, 17 Oct. 2019), and Mercedes-AMG, Mercedes-Maybach and Mercedes me, its brand portfolio includes smart, EQ, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses as well as the brands of Daimler Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Daimler Truck Financial. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol DAI). In 2019, the Group had a workforce of around 298,700 and sold 3.3 million vehicles. Group revenues amounted to EUR172.7 billion and Group EBIT to EUR4.3 billion.
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SOURCE Daimler North America - Corporate Communications
