Project Details
Project
Longfor Group Holdings Limited Green Finance Framework Second-Party Opinion
Client
Longfor Group Holdings Limited
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
China
Evaluation Date
Dec 2020
Evaluation Summary
Sustainalytics is of the opinion that the Longfor Group Holdings Limited Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Pollution Prevention and Control, Renewable Energy – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically Goals 7, 11 and 12.
PROJECT EVALUATION/SELECTION
Longfor Group Holdings Limited’s has established a Green Finance Working Group, comprised of senior representatives from its Research and Development Department, Property Management Department, and Finance Department, to convene at least once a year and oversee activities carried out under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Longfor Group Holdings Limited will use an internal register to track the use of proceeds for each transaction associated with the Framework. Pending allocation, the Group will hold funds in accordance with its normal liquid management policy, with a commitment to not investing unallocated proceeds to any high pollution activities or projects that conflict with the eligibility criteria. The Group intends to allocate proceeds within three-years of issuance. This is in line with market practice.
REPORTING
Longfor Group Holdings Limited intends to provide allocation and impact reporting on an annual basis, until full allocation. Allocation reporting will include information such as the aggregate amount allocated to eligible projects, while impact reporting will draw on several quantitative and qualitative environmental metrics, where feasible. Sustainalytics views Longfor Group Holdings Limited’s allocation and impact reporting as aligned with market practice.