Project Details
Project
Hang Lung Properties Green Finance Framework Second Party Opinion
Client
Hang Lung Properties
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Hong Kong
Evaluation Date
Jun 2019
Evaluation Summary
Sustainalytics is of the opinion that the Hang Lung Properties (HLP) Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and 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) Climate Change Adaption, (iii) Energy Efficiency, (iv) Renewable Energy, (v) Pollution Prevention and Control, and (vi) Sustainable Water Management - are aligned with those recognized by the Green Bond Principles and Green Loan Principles. Sustainalytics considers that the eligible projects will reduce the carbon footprint and improve the environmental performance of HLP’s properties. Sustainalytics views that the eligible activities will contribute to advance Sustainable Development Goals, particularly SDG 6, 7, 9, 11 and 12.
PROJECT EVALUATION/SELECTION
HLP has a two-step project evaluation and selection process. Cross departmental representatives from treasury, finance, development and design, project management and sustainability teams will form a working group selecting an initial set of eligible projects, which are to be approved by HLP’s Sustainability Steering Committee or the Executive Committee. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
The HLP treasury team will manage net proceeds using an internal record which includes information of the description of eligible projects and the allocation of the use of proceeds. Pending full allocation, the unallocated proceeds will be invested in short term time deposits and investments or used to repay existing borrowings according to HLP’s liquidity guidelines. This process is in line with market practice.
REPORTING
HLP commits to report to investors annually on the allocation of proceeds on its website, or as part of HLP’s Annual Report or Sustainability Reports. The (i) allocation report will include the list of eligible green projects including allocated amounts as well as the remaining balance of unallocated proceeds. Regarding the (ii) impact report, where feasible, HLP has committed to disclose data on relevant metrics, such as energy consumption reduction (kWh), carbon emissions reduction (tonnes of CO2e), waste reduction (tonnes), and water consumption reduction (m3). Sustainalytics views the HLP’s allocation and impact reporting to be in line with current market practice.