Project Details
Project
Minmetals Land Limited Sustainable Finance Framework
Client
Minmetals Land Limited
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
China
Evaluation Date
Jul 2021
Evaluation Summary
Sustainalytics is of the opinion that the Minmetals Land Limited Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social 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 SDGs 3, 4, 6, 7, 9 and 11.
PROJECT EVALUATION / SELECTION
Minmetals Land Limited’s (“MML”) project selection and evaluation process will be managed by a Sustainable Development Working Group (“SDWG”), comprised of senior members from the Operations, Design, Finance, Investor Relations and Company Secretary departments. The SDWG will be responsible for identifying and presenting potential projects to the Executive Committee (“EC”) for review and approval, with oversight from MML’s Board of Directors. Any projects that no longer meet the eligibility criteria will be replaced by new ones as soon as practicable. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
MML’s Finance department will be responsible for the management of proceeds. The allocation of proceeds will be tracked using a Sustainable Financing Transactions (“SFTs”) register. Unallocated proceeds will be temporarily held in cash or cash equivalents in line with the Company’s treasury or liquidity management policy. This is aligned with market practice.
REPORTING
MML intends to report on allocation of proceeds on its website or in its annual report on an annual basis until full allocation. Allocation reporting will include information such as the allocation amount by eligible category, project descriptions, share of financing vs. refinancing, lookback period for refinanced projects and amount of unallocated proceeds. In addition, MML is committed to reporting on relevant impact metrics. The allocation and impact reports will be reviewed and approved by the SDWG. Sustainalytics views MML’s allocation and impact reporting as aligned with market practice.