DNV Headquarters, Veritasveien 1, P.O.Box 300, 1322 Høvik, Norway. Tel: +47 67 57 99 00. www.dnv.com 24/02/2022 Fiven Sustainability Linked Bond - DNV - KPI Performance Verification - February 2022 FIVEN SUSTAINABILITY-LINKED FINANCE FRAMEWORK VERIFICATION OF KPI PERFORMANCE Scope and objectives DNV Business Assurance Norway AS (henceforth referred to as “DNV”) has been commissioned by FIVEN ASA (henceforth referred to as “FIVEN”) to verify FIVEN’s actual CO2 and SO2 emission intensity performance per ton silicon carbide (SiC) produced, as well as absolute water withdrawal performance, on a consolidated corporate level1 relative to the SPT trajectories described in FIVEN’s Sustainability-Linked Bond Framework (the “Framework”). Our objective has been to verify FIVEN’s methodology to calculate its i) total scope 1 CO2 emissions per tonne produced SiC, ii) total SO2 emissions per tonne produced SiC and iii) total volume of water withdrawal in m3, as well as to verify the underlying data for the three KPIs. Our methodology to achieve this is described under ‘Work Undertaken’. Responsibilities of the Management of FIVEN and DNV The management of FIVEN has provided the information and data used by DNV during the delivery of this review. Our statement represents an independent opinion and is intended to inform FIVEN management and other interested stakeholders in the BONDS as to how FIVEN’s actual KPI performance relates to the SPT trajectory, based on the information provided to us. In our work we have relied on the information and the facts presented to us by FIVEN. DNV is not responsible for any aspect of the nominated assets referred to in this opinion and cannot be held liable if estimates, findings, opinions, or conclusions are incorrect. Thus, DNV shall not be held liable if any of the information or data provided by FIVEN’s management and used as a basis for this assessment were not correct or complete. Work undertaken Our work constituted a review of the available information, based on the understanding that this information was provided to us by FIVEN in good faith. The work undertaken to form our opinion included: • Discussions with FIVEN management • Review of FIVEN’s methodology to calculate CO2 and SO2 emissions and measure absolute water withdrawal. • Review of FIVEN’s Consolidated Environmental Reporting for 2021, with KPI performance calculations. • Spot checks on underlying documentation for determining the performance for each KPI, including: o SiC production: Annual industrial reports documenting 2021 SiC crude production in Lillesand and Barbacena on a month-by-month basis. o CO2 and SO2 emissions: Methodology and documentation for CO2 and SO2 emissions from SiC production at Lillesand and Barbacena. For Lillesand, this includes documentation on carbon factors for CO2 from SiC and carbon factors for light fuel/diesel, as well as sulphur content for petroleum coke used in the SiC production process. For Barbacena, this includes a check of underlying documentation for month-on-month carbon and sulphur contents in petroleum coke feedstock, as well as carbon factors for light fuel. o Water withdrawal: Documentation on meter measurements for week-on-week water withdrawal at Lillesand, Arendal and day-on-day water withdrawal at Barbacena has been checked. 1 Consolidated corporate level defined as the full FIVEN Group operations in Norway, Belgium and Brazil, excluding FIVEN’s Venezuelan plants. Fiven Annual Report 2021 Sustainability Linked Bond Progress reporting 105
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