Project Details
Project
Korea Land & Housing Corporation Social, Green and Sustainability Bond Second-Party Opinion
Client
Korea Land & Housing Corporation
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Jun 2018
Evaluation Summary
Sustainalytics is of the opinion that the Korea Land & Housing Corporation (LH) Social, Green and Sustainability Bond Framework is credible and impactful, and aligns with the four core components of the Green and Social Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The five categories for the use of proceeds are aligned with those recognized by the Green and/or Social Bond Principles 2018. Sustainalytics considers uses of proceeds for housing welfare programs, eco-friendly housing, renewable energy, waste management, and water management to have clear environmental or social benefits, which advance the UN Sustainable Development Agenda.
PROJECT EVALUATION/SELECTION
LH’s Social, Green and Sustainability Bond Working Group (SGSBWG) is responsible for project selection. Membership in this group includes the Finance Planning Department, the Funds Planning Department, the Funds Support Department, the Accounting Department, and the Administration Information Department.
MANAGEMENT OF PROCEEDS
The proceeds of the bond(s) will be tracked by LH’s treasury team, and an allocation register will be established to record bond details and eligible project information. Pending allocation, funds may be invested in line with the issuer’s liquidity management policy. This is in line with market practice.
REPORTING
LH intends to report annually on the allocation of funds, at the use of proceeds category level as well as by geographic region. In addition, LH will provide quantitative and qualitative impact information where feasible, at the category or portfolio level. In Sustainalytics’ view, reporting on these metrics is in line with market practice.