Green Financing Framework

We published our Green Financing Framework in October 2018. Proceeds are only allocated to projects that are EU taxonomy aligned. Sustainability rating agency ISS ESG has confirmed that the EnBW Green Financing Framework is in accordance with the Green Bond Principles. In 2022, we added electricity grids as a new category in our Framework.

The Green Financing Framework governs the use of Green Financing⁰Green bonds, green loans, green project financing, etc. instruments within the EnBW Group. We have elected a two-step approach to ensure a diligent project evaluation and selection process. This approach is likewise integrated into the Green Financing Framework:

To ensure eligibility for green financing, we have set up a Green Financing Committee with representatives from the corporate finance department, the corporate sustainability department and, on a case by case basis, representatives from business units. Projects to be allocated with proceeds from Green Financing can be submitted by the business units or are chosen by the Green Financing Committee directly. The final decision on the selection of eligible Green Assets can only be taken unanimously.
The Committee is responsible for verifying compliance of all projects with the eligibility criteria specified in the Green Financing Framework. Typical exclusion filters include but are not limited to material controversies and concerns about impacts on environment.

In addition, selection criteria have been defined for prioritising projects. A prioritisation mechanism is used to assess the extent to which projects meet the selection criteria.

EU taxonomy

The project categories specified in the Framework correspond to the classification system for environmentally sustainable economic activities and the technical screening criteria for the environmental objective of climate change mitigation under the EU Taxonomy Directive.⁰As amended 4 June 2021

Projects financed or refinanced under the Framework are selected, among other criteria, on the basis of compliance with the relevant metrics, thresholds and ‘do no significant harm’ criteria under the EU Taxonomy.

EU Green Bond Standard

Our current Green Financing Framework conforms with the July 2021⁰Proposal for a regulation of the European Parliament and of the Council on European green bonds of 6 July 2021 (2021/0191 (COD)). Proposal for a Regulation on European Green Bonds. This enables us where applicable to use the EU Green Bond label in future green bond issues.

Correspondence of eligible project categories to our non-financial key performance indicators, the United Nations Sustainable Development Goals (SDGs) and the EU taxonomy

Eligible green activity	Project category	Contribution to the EnBW key performance indicators⁰Our green activities also have a positive impact on other EnBW top non-financial performance indicators such as our reputa[1]tion index and our customer satisfaction index.	Contribution to the UN SGDs	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements.
Eligible green activity Renewable energies	Project category Wind Offshore	Contribution to the EnBW key performance indicators⁰Our green activities also have a positive impact on other EnBW top non-financial performance indicators such as our reputa[1]tion index and our customer satisfaction index. Expand renewable energies (RE): Installed output of RE in GW and the generation capacity accounted for by RE in % Climate protection CO₂ intensity in g/kWh	Contribution to the UN SGDs Clean and affordable energy Climate action	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements. 4.3 Electricity generation from wind power
	Project category Wind Onshore	Contribution to the EnBW key performance indicators⁰Our green activities also have a positive impact on other EnBW top non-financial performance indicators such as our reputa[1]tion index and our customer satisfaction index. Expand renewable energies (RE): Installed output of RE in GW and the generation capacity accounted for by RE in % Climate protection CO₂ intensity in g/kWh	Contribution to the UN SGDs Clean and affordable energy Climate action	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements. 4.3 Electricity generation from wind power
	Project category Solar (photovoltaic) energy generation	Contribution to the EnBW key performance indicators⁰Our green activities also have a positive impact on other EnBW top non-financial performance indicators such as our reputa[1]tion index and our customer satisfaction index. Expand renewable energies (RE): Installed output of RE in GW and the generation capacity accounted for by RE in % Climate protection CO₂ intensity in g/kWh	Contribution to the UN SGDs Clean and affordable energy Climate action	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements. 4.1 Electricity generation using solar photovoltaic technology
Eligible green activity Electricity networks	Project category Electricity distribution infrastructure	Contribution to the EnBW key performance indicators⁰Our green activities also have a positive impact on other EnBW top non-financial performance indicators such as our reputa[1]tion index and our customer satisfaction index. Supply reliability: SAIDI Electricity in min./year	Contribution to the UN SGDs Clean and affordable energy Industry, innovation and infrastructure	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements. 4.9 Transmission and distribution of Electricity
Eligible green activity Energy efficiency	Project category Smart meters		Contribution to the UN SGDs Industry, innovation and infrastructure Climate action	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements. 7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings
Eligible green activity Clean transportation	Project category E-mobility charging stations		Contribution to the UN SGDs Industry, innovation and infrastructure Sustainable cities and communities	Contribution to the EU taxonomy⁰Classification based on the Draft Delegated Act Annex I dated 4 June 2021 (including appendices). The project needs to fulfil the definition, metrics and thresholds of the applicable Substantial Contribution, the Do No Significant Harm criteria and minimum safeguards requirements. 6.15 Infrastrukture enabling low-carbon road transport and public transport

Financial strategy

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