

With our strategy "Next Generation Mobility" we strive to deliver a clean and safe mobility that is automated, comfortable and affordable for everyone, everywhere. Our commitment towards sustainability is anchored in ZF’s strategy, with climate neutrality by 2040 being one of the strategic KPIs.
The ZF Green Finance Framework summarizes the principles according to which ZF will use green financing instruments in the future. The framework was evaluated by ISS-ESG and applies to green bonds, green bonded loans, green loans and any other debt instruments, aimed at financing and / or refinancing eligible green projects as defined in the ZF Green Finance Framework. The proceeds will only be used to finance projects that contribute to a lower-emission and more climate-friendly economy.
The structure of the ZF Green Finance Framework follows both the ICMA Green Bond Principles 2018 and the LMA Green Loan Principles 2020. ZF 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. ING acted as a consultant for the structuring of the ZF Green Finance Framework.
The ZF Green Finance Framework and its EU Taxonomy Alignment on the current asset pool was reviewed by ISS-ESG with a positive result. In addition, ISS-ESG acknowledges ZF a good sustainability performance against peers on key ESG issues faced by the ‘Auto Components’ sector and gives ZF a Decile Rank relative to industry group of 1, given that a decile rank of 1 indicates highest relative ESG performance out of 10.
ZF will submit an annual Green Finance Report in order to provide investors and the public with transparent information about the allocated proceeds and the climate effects of the financed projects.
Date of Issue | November 3, 2021 |
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Issuer | ZF Finance GmbH |
Securities exchange | Regulated Market of the Luxembourg Stock Exchange |
Securities identification number | A3MP6J |
ISIN | XS2399851901 |
Volume | €500 million |
Denomination | €100,000 |
Coupon | 2.25% |
Coupon payment | Annually on May 3, commencing May 3, 2022 |
Final maturity | May 3, 2028 |
Date of Issue | May 6, 2021 |
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Issuer | ZF Finance GmbH |
Securities exchange | Regulated Market of the Luxembourg Stock Exchange |
Securities identification number | A3E5KP |
ISIN | XS2338564870 |
Volume | €500 million |
Denomination | €100,000 |
Coupon | 2.00% |
Coupon payment | Annually on May 6, commencing May 6, 2022 |
Final maturity | May 6, 2027 |
ZF is expecting a considerable market shift to occur by 2030 thanks to electrification. Within a decade, the proportion of conventional engines will decrease from 90 to less than 50 percent. At a share of 40 percent, pure battery electric vehicles (BEVs) will have clearly overtaken plug-in hybrid electric vehicles (PHEVs). The Use of Proceeds thus consequently focus on one hand on the development, manufacture and distribution of products for BEVs, and on the other hand on the development, manufacture and distribution of wind turbine gear units. In doing so, ZF accounts for the global energy transition required for the transformation towards electromobility to succeed. According to IRENA, renewable energies would need to climb to 86 percent of electricity generation by 2050 to achieve the objectives of the Paris Agreement. In this scenario, wind energy is set to become one of the biggest drivers of the global energy transition, supplying more than one-third of total electricity demand, and this at strongly increasing energy generation needs.
In addition to the current portfolio, the framework includes Eligible Categories related to Pollution Prevention and Control as well as Energy Efficiency.
Vice President Financing, Finance Controlling, Investor Relations
Is the future programmable? Software will be a decisive factor for success in the mobility industry, and not just for ZF. Because the automobile is increasingly software-defined, the company is pushing the topic to the forefront of its thinking and actions. It is therefore no surprise that the Annual Report has a strong software theme in terms of both look and content. Find all the key facts and figures on the 2021 annual accounts in this downloadable PDF.