Second-Party Opinion Download

Sustainalytics is of the opinion that the CMB Financial Leasing Co., Ltd. Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:  

USE OF PROCEEDS

The eligible categories for the use of proceeds – Clean Transportation, Renewable Energy, Pollution Prevention and Control, Sustainable Water and Wastewater Management, and Access to Essential Services – 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 may reduce the environmental footprint of the company’s operation and provide social benefits in China and advance the UN Sustainable Development Goals (SDGs), specifically SDGs 3, 6, 7, 11 and 12.  

PROJECT EVALUATION / SELECTION

CMB Financial Leasing’s internal process in evaluating and selecting projects will be overseen by the Sustainability Finance Working Group (SFWG) which will be led by the Vice President of the company and will comprise of senior representatives from the Global Markets & Treasury, Strategy & Development, Credit Assessment and Asset Management Department. SFWG will review the allocation of proceeds in conformity with the Framework’s criteria on an annual basis. CMB Financial Leasing’s environmental and social risk assessment and mitigation process are applicable to all allocation decisions made under the Framework. Sustainalytics considers this process to be adequate. 

MANAGEMENT OF PROCEEDS

CMB Financial Leasing’s processes for management of proceeds will be managed by the Global Markets & Treasury Department and overseen by the SFWG. The use of proceeds will be tracked using an internal register. Pending allocation, unallocated proceeds will be invested in cash and cash equivalents or deposits. This is in line with market practice. 

REPORTING

CMB Financial Leasing intends to report on allocation of proceeds until full allocation and impacts of the proceeds until the maturity of the bond on an annual basis on its website. Allocation reporting will include information on eligible projects financed, proportion of financed and refinanced projects, amount of unallocated proceeds and details on temporary allocation. In addition, CMB Financial Leasing is committed to reporting on relevant impact metrics. Sustainalytics views CMB Financial Leasing’s allocation and impact reporting as aligned with market practice.