TRATON Group Establishes Green Finance Framework to Accelerate Electric Commercial Vehicle Transition

The TRATON GROUP has introduced its first group-wide Green Finance Framework designed to accelerate financing and refinancing of battery-electric commercial vehicles throughout the entire value chain. This strategic initiative enables capital providers to join the transformation journey of the commercial vehicle industry, supporting the shift toward a more sustainable and electrified future.

Christian Levin, CEO of the TRATON GROUP, stated that the company is committed to driving the transformation of commercial transport through sustainable innovation. The framework aligns TRATON's financing strategy with global climate goals and offers investors a transparent, forward-looking platform to support the transition to battery-electric mobility. This development represents a significant step in corporate sustainability efforts within the heavy transportation sector.

The framework received an independent Second Party Opinion from S&P Global Ratings, which assessed it as "Dark Green" - the highest possible rating available. This endorsement provides credibility and assurance to potential investors about the environmental integrity of the financing mechanism. The Dark Green rating indicates that the framework contributes substantially to environmental objectives and aligns with best practices in sustainable finance.

Through this framework, capital providers can advance TRATON's investments into battery-electric mobility using various green financing instruments, including Green Bonds, Loans, Schuldscheine, and Asset-Backed Securities. The framework complies with the latest international standards and ensures that proceeds are exclusively allocated to BEV-related eligible green projects. Under the "Clean Transportation" category defined by the International Capital Market Association (ICMA), TRATON has established four specific sub-categories: Research & Development, Manufacturing, Financial Services, and Charging Infrastructure for battery-electric commercial vehicles.

A Green Finance Committee, integrated into TRATON GROUP's existing governance structure, will be responsible for evaluating, selecting, and monitoring eligible investments. The company will maintain transparency through annual reporting on the use of proceeds and their environmental impact. This governance structure ensures proper oversight and accountability for the allocated funds.

The implications of this framework extend beyond TRATON's immediate operations, potentially influencing the entire commercial vehicle industry's transition to electric mobility. By creating a structured financing mechanism, TRATON addresses one of the key barriers to electric vehicle adoption - financing infrastructure and vehicle costs. This initiative could accelerate the commercial transportation sector's decarbonization efforts and set a precedent for other manufacturers to follow similar sustainable financing approaches. More information about TRATON's sustainability initiatives can be found at https://www.traton.com/en/sustainability.