Project Details
Project
China Everbright Bank Green Bond Second-Party Opinion
Client
China Everbright Bank
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Clean transport; Water/waste water management; Climate change adaptation; Energy efficiency; Green buildings;
Location
China
Evaluation Date
Aug 2018
Evaluation Summary
Sustainalytics is of the opinion that the China Everbright Bank Green Bond Issuance Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds including, (i) renewable energy, (ii) clean transportation, (iii)solid waste management, (iv) wastewater treatment, (v) climate change adaptation, (vi) energy efficiency and (vii) green buildings, are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the use of proceeds categories will contribute to positive environmental impacts and advance several UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
CEB’s internal process of evaluating and selecting projects is aligned with market practice. CEB has a dedicated working group comprised of representatives from the departments of Strategic Customer and Investment Banking, Trade and International Banking, Asset and Liability Management, Risk Control, and Finance.
MANAGEMENT OF PROCEEDS
CEB’s processes for management of proceeds is aligned with market standards. CEB will earmark the use of proceeds through a record book. Unallocated proceeds are temporarily invested in domestic and international short-term investment vehicles with good credit rating and market liquidity.
REPORTING
CEB intends to report on allocation of proceeds in a Green Bond Annual Report. In addition, CEB is committed to reporting on impact metrics such as energy saved, CO2 avoided, and green building certification. In Sustainalytics’ view, reporting on these metrics is in line with market practice.