Second-Party Opinion Download

Sustainalytics is of the opinion that the Haier Leasing Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Food Security and Sustainable Food Systems, Access to Essential Services, and Socioeconomic Advancement and Empowerment Financing – are aligned with those recognized by the Social Bond Principles 2021 that seek to improve access to healthcare and education and contribute to an inclusive society in China. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2,3, 4, 5, 8 and 10.

PROJECT EVALUATION / SELECTION

Haier Financial Services China Co. Ltd’s Social Bond Working Group (“Working Group”), led by the senior management of the Company and comprised of representatives of Strategy Development, MSME Finance, Agriculture & Food, Education & Culture, Medical & Healthcare, Risk Management and Financial Market Department, will select eligible social assets in accordance with the Framework. The Working Group will apply internal environment and social risk management systems to all allocation decisions made under the Framework, which Sustainalytics views as adequate. Sustainalytics considers the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Haier Financial Services China Co. Ltd’s Risk Management and Financial Markets Departments are responsible for the management and allocation of proceeds, and will track the use of proceeds through a separate register. Pending allocation, unallocated proceeds will be used in money market instruments with market liquidity. This is in line with market practice.

REPORTING

Haier Financial Services China Co. Ltd intends to report on allocation of proceeds on its website on an annual basis until full allocation. The allocation reporting will include the total amount of proceeds allocated to eligible projects and remaining balance of any unallocated funds. In addition, Haier Financial Services China Co. Ltd is committed to reporting on relevant impact metrics. This is aligned with market practice.