Multi-theme

PORTFOLIO INVESTMENT SPOTLIGHT FIXED INCOME

Kingdom of Spain

IMPACT THEORY OF CHANGE

Investments in Spain's green bond will support government spending in renewable energy, clean transportation, wastewater management, energy efficiency, pollution prevention, the circular economy, and climate adaptation.

FIVE DIMENSIONS OF IMPACT

WHAT	National reduction in GHG emissions by 2030, compared to 1990 Increased resilience to climate change	23% Aspirational
WHO	Percentage of Spain's territory affected annually by wildfire Number of estuaries in Spain	0.15% 93
HOW MUCH	Amount of sediment removed to help to recover estuaries River space recovered for natural habitat through Ebro Resilience program Seeds provided annually that produce climate-resistant plants and trees	585,000 m³ 21 hectares 9,500 kg
CONTRIBUTION	Carbon-intensity threshold for eligible energy-generation activities	100 CO2e/KWh
RISK	Execution: Funding projects that are not environmentally sound or that may increase harmful emissions	Moderate risk/ low probability

UN SDG ALIGNMENT
Industry, Innovation, and Infrastructure

TARGET 9.4
Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes

NEGATIVE IMPACTS
Environmental impact of operations and supply chain

SCALE
Moderate

MITIGATION EFFORTS
Moderate

WILLINGNESS TO ENGAGE
Sufficient

QUALITATIVE ASSESSMENT

We believe the Kingdom of Spain's green bond continues to fund projects that have positive environmental impacts across a range of outcomes.

Meets expectations

ENGAGEMENT PRIORITIES

Release of the bond's first impact report, which is expected to include details of the impact of the various programs as well as the underlying methodologies and assumptions used.

^{Portfolio spotlight examples are based on non-performance-based criteria. For information on how we selected the portfolio spotlight examples, please see the important disclosures section. Portfolio spotlight examples are for illustrative purposes only, are not representative of all investments made by the portfolio, and should not be interpreted as specific security recommendations or advice. It should not be assumed that an investment in the examples have been or will be profitable. Actual holdings vary for each client, and there is no guarantee that a particular client's account will hold the examples presented. Key Performance Indicator data is based on issuer or company reporting, press releases and websites, proxy data, and Wellington analysis. While data is believed to be reliable, no assurance is being provided as to its accuracy or completeness. Wellington determines the UN SDG goals and targets that, in our view, each portfolio company or issuer is aligned with. Language for the goals and targets has been abbreviated, but not otherwise altered, from UN.org.}