Project Details
Project
Concord New Energy Green Bond Framework Second-Party Opinion
Client
Concord New Energy
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
China
Evaluation Date
Apr 2020
Evaluation Summary
Sustainalytics is of the opinion that the Green Bond Framework for Concord New Energy (CNE) is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP). 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 GBP. Sustainalytics considers that the eligible category will help to reduce total GHG emissions by increasing the renewable energy output and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION/SELECTION
According to CNE’s three-step project evaluation and selection process, eligible projects will be identified by multiple departments. Final approval of shortlisted projects is conducted by the Investment Committee, which is comprised of cross-functional representatives from the Board of Directors, Audit Committee, Senior Management Team, Safety Management Committee, and business units. The Investment Committee will approve the projects in accordance with the Company’s Green Projects Selection and Investment Management Policy and review the allocation of proceeds annually based on eligibility criteria. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
Proceeds of the green bond will be tracked and recorded by the Company’s Finance Department using a dedicated Green Finance Allocation Register. The register will include information on green bond details, amount of proceeds allocated, and the remaining balance of unallocated proceeds, as well as the type of temporary investments for unallocated proceeds. Pending full allocation, unallocated proceeds will be invested in bank deposit and other fixed-income investment in accordance with CNE’s liquidity management policy. This process is in line with market practice.
REPORTING
CNE will publish its allocation and impact reports annually on its corporate website, until full allocation. Allocation reporting will include a list of eligible projects financed or refinanced with descriptions and amount of net proceeds allocated on an aggregated portfolio basis. Impact reporting will provide relevant impact metrics. This process is in line with market practice.