Project Details
Project
Zhong Neng Offshore Wind Project Green Loan Framework Second-Party Opinion (2021)
Client
China Steel Power Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Taiwan
Evaluation Date
Nov 2021
Evaluation Summary
Sustainalytics is of the opinion that the Zhong Neng Offshore Wind Project Green Loan Framework is credible and impactful, and aligns with the four core components of the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds Renewable Energy, is aligned with those recognized by the Green Loan Principles. Sustainalytics considers that investments in the eligible category are expected to contribute to the Taiwanese Government’s commitment of delivering 5.5 GW of offshore wind power by 2025 and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION / SELECTION
China Steel Power Corporation’s Board of Directors oversees the internal process for evaluating and selecting projects. China Steel Power Corporation has undertaken an Environmental Impact Assessment to ensure environmental and social risks associated with the project financed are identified and managed. Sustainalytics considers this process to be strong, and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
China Steel Power Corporation’s processes for management of proceeds is overseen by the project and deputy CFO. The allocation of proceeds is systematically tracked in the project budget and the monthly construction reports will be issued throughout the construction period. Pending allocation, unallocated proceeds will be held in cash or cash equivalent. This is in line with market practice.
REPORTING
China Steel Power Corporation intends to report on allocation and impact of proceeds from green financing to its commercial lenders through a monthly construction report, quarterly operating report and semi-annual environmental and social report. In addition, China Steel Power Corporation is committed to reporting on relevant impact metrics. Sustainalytics views China Steel Power Corporation’s allocation and impact reporting as aligned with market practice.