Through its Green Finance Framework, Johnson Controls may from time to time issue Green Bonds and other green financing instruments (including Green Loans and Green Schuldscheine).
The utilization of the proceeds from any Green Financing should provide clear environmental benefits. The Green Bond Principles & Green Loan Principles recognize eligible green categories for utilization of Green Finance proceeds, contributing to five high level environmental objectives: climate change mitigation, climate change adaptation, natural resource conservation, biodiversity conservation and pollution prevention and control.
The JCI Green Finance Framework follows the ICMA Green Bond Principles 2018 edition and Green Loan Principles 2020 edition. These principles intend to promote integrity of the Green financing market by offering guidelines that recommend transparency, disclosure and reporting in order to drive investors to allocate capital to Green projects.
In line with the Principles, JCI intends to allocate an amount equal to 100% of any Green Finance proceeds to a portfolio of Eligible Green Projects across the following categories:
After the issuance of any Green Financing, Johnson Controls intends to report on the allocation of net outstanding green proceeds to Eligible Green Projects in the portfolio, and the positive environmental impact related to those Projects.
Johnson Controls has retained an independent consultant with recognized environmental and social expertise to provide a Second Party Opinion on the environmental benefits of its Green Bond Framework as well as the alignment to Green Bond Principles and Green Loan Principles, as applicable.