Second-Party Opinion Download

Sustainalytics is of the opinion that the Shimao 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, Sustainable Water and Wastewater Management, Renewable Energy, Clean Transportation – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories are expected to reduce the carbon footprint and improve the environmental performance of Shimao’s operations while advancing the UN Sustainable Development Goals (SDGs), specifically SDG 6, 7, 11, 12.

PROJECT EVALUATION/ SELECTION

Shimao established a Sustainability Taskforce, comprised of senior members including Chief Financial Officer and department representatives from Finance & Investor Relations, Operation Management Center, Development & Design Center, and regional offices. The Sustainability Taskforce will meet at least annually to review the proposed allocations and ensure that the allocation is in line with the eligibility criteria. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Shimao Group Holdings Limited will use an internal register to track the use of proceeds for each transaction under the Framework. Shimao intends to reach full allocation within 24 months after each issuance. Pending allocation, the unallocated proceeds will be held in short-term time deposits or investments in accordance with Shimao’s liquidity guidelines. Shimao excludes any high pollution activity or any project that conflicts with the Framework eligibility criteria from temporary allocation. Sustainalytics views this as is in line with market practice.

REPORTING

Shimao Group Holdings Limited intends to report on the allocation and impact of proceeds on its website, Annual Report or Sustainability Report on an annual basis until full allocation. Allocation reporting will include details such as the aggregate amount of proceeds allocated to eligible projects, the balance of unallocated proceeds, the share of financing vs refinancing. In addition, Shimao Group Holdings Limited is committed to reporting on relevant impact metrics. Sustainalytics views Shimao Group Holdings Limited’s allocation and impact reporting as aligned with market practice.