Project Details
Project
Ping An Real Estate Co., Ltd. Green Financing Framework Second-Party Opinion (2021)
Client
Ping An Real Estate Co., Ltd.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
China
Evaluation Date
Jun 2021
Evaluation Summary
Sustainalytics is of the opinion that the Ping An Real Estate Co., Ltd. Green Financing Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Pollution Prevention and Control, and Sustainable Water Management – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that activities in the eligible categories are intended to improve the environmental performance of Ping An Real Estate’s building stock and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 11 and 12.
PROJECT EVALUATION / SELECTION
Ping An Real Estate’s internal process in evaluation and selecting projects is managed by the Green Financing Committee (“GFC”), which is chaired by a Treasury delegate and composed of delegates from the Legal, Engineering, Management, Office Management, and Investor Relations, other relevant business units. The GFC will review and select eligible projects according to the criteria established in the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Ping An Real Estate’s process for management of proceeds is overseen by the GFC. The Company will set up a Green Financing Register to track the allocation of proceeds following a portfolio approach. PARE is committed to allocating net proceeds to Eligible Projects on a best effort basis within 36 months of the date of issuance. Unallocated proceeds may be held in cash, cash equivalents or other short-term market instruments. This is in line with market practice.
REPORTING
Ping An Real Estate Co., Ltd. intends to report on allocation of proceeds on its website on an annual basis until full allocation. In addition, Ping An Real Estate Co., Ltd. is committed to reporting on relevant impact metrics. Sustainalytics views Ping An Real Estate Co., Ltd.’s allocation and impact reporting as aligned with market practice.