Second-Party Opinion Download

Sustainalytics is of the opinion that the Lotte Property & Development Sustainability Bond Framework is credible and impactful, and aligns with the Green Bond Principles 2018, Social Bond Principles 2018 and Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds (green commercial buildings and clean public transport infrastructure and sustainable mobility) are aligned with those recognized by the Green Bond Principles as project categories with clear environmental benefits. In addition, the eligible green buildings provide improvement of professional conditions of low-income individuals working within the buildings, which is aligned with the Social Bond Principles and Sustainability Bond Guidelines which seek to achieve positive socioeconomic outcomes for target populations.

PROJECT EVALUATION/SELECTION

‘Eligible Assets’ and ‘Eligible Projects’ are to be selected by a dedicated Sustainability Bond Committee (the ‘Committee’), which is composed of Lotte P&D’s representatives from the Finance & Accounting Team, the Risk Management Group, the IT Group and Lotte Group’s CSR Team. The same Committee will also oversee the compliance of the Eligible Assets and Eligible Projects with Lotte P&D’s environmental and social risk management guidelines. This process is aligned with market practices.

MANAGEMENT OF PROCEEDS

The process for the management of proceeds is aligned with market practices, as Lotte P&D will monitor and track the allocation of the net proceeds through its internal accounting system. Pending full allocation, the unallocated proceeds may temporarily be invested in accordance with the company’s investments guidelines in cash, deposits and money market instruments. This is in line with market practice.

REPORTING

Lotte P&D commits to provide an annual allocation and impact report as part of the company’s ‘Sustainability Newsletter’, with allocation reporting aligned with market practices including the amount of unallocated proceeds. With regards to the impact report, Lotte P&D will disclose, on a best efforts basis, environmental and social impact indicators such as energy consumption (KWh/m2), annual GHG emissions reduced/avoided (tons of CO2e) and number of low-income individuals who benefitted from an improvement of their salary. Sustainalytics assesses that the impact indicators are in line with market practices.