Project Details
Project
City Developments Limited Green Finance Framework Second-Party Opinion
Client
City Developments Limited (CDL)
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Singapore
Evaluation Date
Jan 2019
Evaluation Summary
Sustainalytics is of the opinion that the City Developments Limited (CDL) Green Finance Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018, and the Green Loan Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Green Buildings, (ii) Renewable Energy, (iii) Energy Efficiency, (iv) Pollution Prevention and Control, (v) Sustainable Water and Wastewater Management, and (vi) Environmentally Sustainable Management of Living Natural Resources and Land Use - are aligned with those recognized by the Green Bond Principles 2018 and Green Loan Principles 2018. Sustainalytics considers the eligible green project categories to have positive environmental impact and advance the UN Sustainable Development Goals, specifically 6, 7, 11, 12, and 15.
PROJECT EVALUATION/SELECTION
CDL’s internal process for evaluating and selecting projects will involve a cross-functional team consisting of members from various departments, including Property Development, Treasury, Asset Management, and Sustainability, as well as the joint approval from the Group’s Chief Sustainability Officer and the Group Chief Financial Officer. This is in line with market best practice.
MANAGEMENT OF PROCEEDS
CDL will track the net use of proceeds through an internal register. The proceeds of the transaction will be deposited in CDL’s general account and earmarked for allocation in the register. Pending allocation, proceeds will be held in accordance with CDL’s general liquidity guidelines for short-term deployment. This is in line with market practice.
REPORTING
CDL intends to disclose the information in its Integrated Sustainability Report published within its sustainability website on an annual basis. The allocation reporting will include, among other things, the aggregate amount allocated to eligible projects, as well as the balance of unallocated proceeds. The impact reporting will include relevant metrics. Sustainalytics views CDL’s allocation and impact reporting as aligned with market practice.