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GlobalCompanyInvestor Relations Sustainable Finance
GlobalCompanyInvestor Relations Sustainable Finance
Sustainable Finance @ ZF
CompanyInvestor Relations Sustainable Finance

Sustainable Finance

Next Generation Sustainability

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.

“Investors can participate in ZF's sustainability strategy and contribute to a lower-emission and more climate-friendly economy. At the same time ZF can combine its financing and sustainability strategy to finance the significant investments towards Next Generation Mobility.”

Dr. Konstantin Sauer

Why did ZF decide for Green Financing?
Sustainability is anchored in ZF's strategy and climate neutrality by 2040 is one of the strategic key performance indicators. Green Finance contributes towards our sustainability strategy and offers new financing opportunities for projects that contribute to a lower-emission and more climate-friendly economy. At the same time it opens up new opportunities for green investors. Green Finance is a consequent step on accelerating the transformation towards Next Generation Mobility and prepares for the use of sustainable financing instruments.
Dr. Konstantin Sauer, Chief Financial Officer (CFO)
ZF Green Finance Framework

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.

Second Party Opinion incl. EU Taxonomy Alignment

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 Green Finance Reports

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.

Use of the Proceeds

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.

Contact to Investor Relations

Contact to Investor Relations

Charbel Chamoun

Senior Manager Investor Relations & Rating

+49 7541 77-969305

investor.relations@zf.com

Alexander König

Vice President Financing, Finance Controlling, Investor Relations

investor.relations@zf.com

Sustainability

ZF plans to become climate-neutral by 2040. In its sustainability efforts, the company focuses on four levers: products, production, employees and supply chains.

Electric Mobility

Why we need electric mobility and which role plug-in hybrid drives play at the mobility of today and tomorrow. This and more information around electric cars and electrification is answered here.

Wind Power

ZF Wind Power stands for the highest quality at competitive prices and customer proximity around the globe.

Current publications

Annual Report 2020

In the Annual Report, you will find important data and facts from the 2020 fiscal year.

Sustainability Report 2020

What does sustainability mean for ZF? The Sustainability Report provides the answer to this question.