SECOND PARTY OPINION1 ON CHANEL’S SUSTAINABILITY-LINKED BOND FRAMEWORK September 2020 BACKGROUND CHANEL (hereafter the “Issuer”) contemplates including three environmental factors to the Sustainability-Linked Bonds (the “SLBs”) to be issued in compliance with the Sustainability-Linked Bond Framework (the “Framework”) created to govern their issuances and following the Sustainability-Linked Bond Principles (the “SLBP”). The Framework will include the Issuer’s commitment to achieve specific target...

management Climate targets and/or goals should be integrated into management’s incentivization model and should not be contradictory to other incentives The board should have the necessary expertise and skills

perhaps contradictory regulations between jurisdictions is also an issue that should be monitored so that no regulatory vacuum is allowed to develop (i.e. issues slipping through in which no authority has