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Project Details


Shui On Land Sustainability-Linked Bond Framework Second-Party Opinion (2021)


Shui On Land

Project Type

Sustainability Linked Bond or Note

Industry Group


Use of Proceeds




Evaluation Date

Jun 2021

Evaluation Summary

Sustainalytics is of the opinion that the Shui On Land Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following:

Selection of Key Performance Indicators (KPI)

Shui On Land Sustainability-Linked Bond Framework includes one KPI: Scope 1 and 2 GHG emissions intensity (see Table 1). Based on the consideration for the materiality of the KPI, its relevance to Shui On Land’s business, the scope of its applicability, and ability to be benchmarked, Sustainalytics considers the KPI to be strong. 

Calibration of Sustainability Performance Target (SPT)

Sustainalytics considers the SPT to be aligned with the Issuer’s sustainability strategy. Sustainalytics notes that the SPT i) goes beyond business-as-usual, ii) exceeds peer performance/targets and iii) aligns with a well-below 2-degree climate scenario. As such, Sustainalytics is of the opinion that the SPT is ambitious and demonstrates industry leadership. 

Bond Characteristics

Shui On Land will link the bond’s financial/ structural characteristics to the achievement of the SPT, where a failure to achieve the SPT at target observation date will trigger a penalty. The penalty will reference the coupon rate and an equivalent amount to the coupon rate step-up will be settled in one of the following ways: i) increase in the coupon payments to the investor ii) purchase of green electricity certificates or carbon credit/offset certificates or iii) payment to a research institute or a non-governmental organization.  


Shui On Land commits to report on an annual basis on its performance on the KPI in its annual report or its annual standalone Sustainable Development Report or in a separate bond-level report which will be published annually on its website. SOL commits to disclose relevant information that affect the KPI performance, including verification assurance reports and any other information enabling investors to monitor progress against SPT as well as analysis of the Company's KPI and SPT. The reporting commitments are aligned with the SLBP.  


Shui On Land commits to have external limited/ reasonable assurance conducted on its KPI performance at the communicated SPT deadline, which is aligned with market expectations.