Project Details
Project
Shandong Hi-Speed Group Green Finance Framework Second-Party Opinion (2022)
Client
Shandong Hi-Speed Group Co., Ltd.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
China
Evaluation Date
May 2022
Evaluation Summary
Sustainalytics is of the opinion that the Shandong Hi-Speed Group Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Clean Transportation, Energy Efficiency, Pollution Prevention and Control and Green Buildings – are aligned with those recognized by the Green Bond Principles 2021 and the Green Loan Principles 2021. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.
PROJECT EVALUATION / SELECTION
Shandong Hi-Speed Group has established the Green Finance Working Group (GFWG), which is comprised of senior representatives from several departments to oversee the project evaluation and selection process. Shandong Hi-Speed Group has processes in place to identify and mitigate common environmental and social risks associated with the eligible projects, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers Shandong Hi-Speed Group’s risk management system to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The GFWG will also oversee the management of proceeds and track the proceeds using a portfolio approach via a green finance register. Shandong Hi-Speed Group intends to fully allocate net proceeds within two years of issuance. Pending full allocation, unallocated proceeds will be held in cash instruments. This is in line with market practice.
REPORTING
Shandong Hi-Speed Group intends to report on allocation of proceeds on its website annually until full allocation. Allocation reporting may include the amount of allocated proceeds by eligible category, the description of eligible green projects and the share of financing versus refinancing. Impact reporting may include relevant environmental impact indicators. Sustainalytics views Shandong Hi-Speed Group allocation and impact reporting as aligned with market practice.