Second-Party Opinion Download

Sustainalytics is of the opinion that the CK Hutchison Holdings Limited Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation, Circular Economy and Design, Access to Essential Services: Digital Inclusion, and Emergency Response and Pandemic Relief – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 7, 8, 9, 11 and 12.  

PROJECT EVALUATION AND SELECTION

CKHH’s board-level Sustainability Committee is responsible for reviewing assets, projects and investments nominated by the Sustainability Working Group. The Sustainability Committee will be responsible for designating assets, projects and investments as eligible projects upon confirmation of their eligibility. The Sustainability Working Group comprises representatives from the Finance, Treasury, Management Services, Corporate Affairs, Human Resources, Legal and Sustainability departments. CKHH’s Group Sustainability Framework, sustainability policies and corporate governance policies are applicable to allocation decisions under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection and evaluation process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

CKHH’s Sustainability Working Group will track receipt and allocation of net proceeds using a portfolio approach. CKHH intends to allocate net proceeds to eligible assets within 36 months of issuance. Net proceeds awaiting allocation will be temporarily invested in cash, cash equivalents or liquid and marketable instruments not related to GHG-intensive activities. This is in line with market practice. 

REPORTING

CKHH intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include details such as the amount invested per category, the share of financing versus refinancing and the balance of unallocated proceeds. In addition, CKHH is committed to reporting on relevant impact metrics. Sustainalytics views CKHH’s allocation and impact reporting as aligned with market practice.