Second-Party Opinion Download

Sustainalytics is of the opinion that the Hong Kong Mortgage Corporation Limited Social, Green and Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021.  This assessment is based on the following:  

USE OF PROCEEDS The eligible categories for the use of proceeds are aligned with those recognized by the Sustainability Bond Guidelines, Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts in Hong Kong and invested regions and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7, 8, 9, 11 and 12. 

PROJECT EVALUATION / SELECTION The Hong Kong Mortgage Corporation has established an internal working group that will be responsible for the project evaluation and selection process in line with the Framework’s eligibility criteria. The Hong Kong Mortgage Corporation ESG Committee is responsible for the final approval of the eligible projects and ensuring the risk management and internal control systems are in place for managing environmental and social risks associated with the eligible projects. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS The Hong Kong Mortgage Corporation’s Financial Control Department will track the allocation of proceeds through an independent allocation register. Pending allocation, unallocated proceeds may be held in accordance with The Hong Kong Mortgage Corporation’s internal liquidity management policy and managed in accordance with The Hong Kong Mortgage Corporation’s Responsible Investment, Lending and Business Decision-making Principles and the exclusionary list of the Framework. Sustainalytics views the management of proceeds as aligned with market practice.

REPORTING The Hong Kong Mortgage Corporation intends to report on the allocation and impact of net proceeds in a report made available through The Hong Kong Mortgage Corporation’s website annually until full allocation. Allocation reporting will include a list of all sustainable financing instruments, the share of financing and refinancing, the amount and percentage of proceeds allocated under the eligible categories and the remaining balance of unallocated proceeds. In addition, The Hong Kong Mortgage Corporation is also committed to reporting on relevant impact metrics. Sustainalytics views The Hong Kong Mortgage Corporation’s allocation and impact reporting as aligned with market practice.