How is FS going track and verify internally proceeds from the green bonds?

As per Framework, the Ferrovie dello Stato Italiane (FS) Green Bond Working committee will select Eligible Green Projects that will be recorded in a Green Bond Register. FS’ Treasury will allocate by intercompany loans (for the benefit of Trenitalia with respect to the inaugural green issuance) the proceeds to the projects recorded in the Green Bond Register. The Treasury will make the correspondence between the Green Bond Register and the proceeds as well as FS’ auditor is available to provide a third-party opinion in order to audit once a year the compliance of  allocation of the proceeds with FS Green Bond framework. Fully disclosure of this process will be available in the forthcoming Sustainability Reports, via this web site.

Outside the Sustainalytics’ Second Party Opinion and the auditor’s verification, what kind of external verification will you provide for this green bond (on the impact reporting notably)?

About impact reporting, a punctual disclosure will be available in the FS Group Sustainability Reports.

This reporting will be done on a project category level. Savings/emissions avoidance will be reported against the baseline of comparable trains operating in Italy.

Ferrovie already provides reporting on CO2 and pollutants emissions, at the corporate level, in its Sustainability Reports.

Please further note that both of the trains (Regional and High Speed) obtained access to the the so called “White Certificates” (“Certificati Bianchi”) incentive scheme, also known as “Energy Efficiency Certificates”, which are tradable instruments giving proof of the achievement of end-use energy savings through energy efficiency improvement initiatives and projects. Each certificate is worth one tonne of oil equivalent (toe) saved. Similar instruments exist in other European countries.

More info about White Certificate in Italy are available on GSE website.

The Italian Law Decree of 28 Dec. 2012 provides that the activities of management, evaluation and certification of the savings associated with energy efficiency projects under the White Certificates schemes are ascribed to the GSE, as of 3 Feb. 2013. GSE is the Italian Energy Service Manager.

GSE’s sole shareholder is the Ministry of Economy and Finance, which exercises shareholder’s rights together with the Ministry of Economic Development.

Do you plan to get a CBI certification?

Question is open. It will depend on investors’ feedback about the importance of this certification, being the use of proceeds certainly aligned with the “Climate Action” SDG (Sustainable Development Goal).

Is FS going to report allocation and environmental KPIs on an aggregated basis (at the category of projects level)?

The reporting will be done on a project category level.

Are the new trains going to replace existing rolling stocks?

The EMU (Electric Multiple Unit trains) for Regional Public Transport are going to replace existing rolling stock which Trenitalia is going to sell, in accordance with specific internal procedures and potential buyers could be foreign railways companies. It is worth of notice that the new trains will be used in Emilia Romagna where Trenitalia signed with the Region a 22.5 years service agreement (starting in 2019) in order to grant high quality Local Public Transport to commuters; a put option is granted to the incumbent at the expiry date to sell the trains to the new operator in order to reduce residual value risk.

The ETR1000 (which began its service in the High Speed Market in 2015) has allowed Trenitalia a significant fleet deployment with a valuable enhancement of its service in the Medium and Long Haul market. As a matter of fact any new ETR1000 will allow FS to use previous models (eg. ETR500 and ETR480) on other lines, increasing quality of all types of products, including Intercity. The deployment result will let the company dispose of 28 Intercity trains which will be partially sold (almost half of them) and the other ones will be demolished, maximising materials’ reuse and minimising the impacts on the environment, in accordance with FS policies and Group commitment for a sustainable approach to the business.