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Second-Party Opinion Download

Project Details


Hysan Sustainable Finance Framework Second-Party Opinion (2021)


Hysan Development Company Limited

Project Type

Sustainability Bond/Loan

Industry Group


Use of Proceeds



Hong Kong

Evaluation Date

Jul 2021

Evaluation Summary

Sustainalytics is of the opinion that the Hysan Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021 and Green Loan Principles 2021. This assessment is based on the following:   


The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Renewable Energy, Waste Management and Recycling, Climate Change Adaptation, Affordable Basic Infrastructure, Pandemic and infection related investments and expenditure – are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 7, 9, 11, 12, and 13.   


Hysan has established a working group to oversee the project evaluation and selection process. The working group is comprised of representatives from Hysan’s technical service, property management, project department, sustainability department and finance department. The working group will identify and manage environmental and social risks associated with eligible projects. Shortlisted projects will be presented to Hysan’s Sustainability Committee for final approval.  Sustainalytics considers the project selection process in line with market practice  


Hysan’s finance team will track the allocation of proceeds through an internal register. Pending full allocation, the Company may hold proceeds in accordance with its internal liquidity management policy. Hysan has confirmed with Sustainalytics the intention to allocate proceeds within 36 months of issuance.  This is in line with market practice. 


Hysan has committed to reporting on the allocation and impact of net proceeds on an annual basis until all the net proceeds have been allocated, on its website and within corporate responsibility reports. Allocation reporting will include details of each Sustainable Finance Transaction (SFT), the aggregate amount, and the name and description of eligible projects to which SFT’s have been allocated. Hysan will report on relevant impact metrics where possible. Sustainalytics views Hysan’s allocation and impact reporting as aligned with market practice.