Project Details
Project
Yanlord Land Group Limited Green Finance Framework Second-Party Opinion
Client
Yanlord Land Group Limited
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Singapore
Evaluation Date
Feb 2021
Evaluation Summary
Sustainalytics is of the opinion that the Yanlord Land Group 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, Sustainable Water and Wastewater Management, Renewable Energy, Pollution Prevention and Control, and Clean Transportation − are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that investments the eligible categories could decrease the carbon footprint of Yanlord’s building portfolio in China and Singapore while advancing the UN Sustainable Development Goals (SDGs), specifically SDGs 6, 7, 11, and 12.
PROJECT EVALUATION / SELECTION
Yanlord’s internal process in evaluating and selecting projects is overseen by the ESG Task Force comprised of department representatives from Finance, Design and Architecture, Building Engineering and Procurement, Operation Management, Property Management and Investor Relations. The Task Force will meet at least annually to review and ratify eligible projects in line with the eligibility criteria, manage future updates to the Framework and facilitate reporting. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The proceeds of the green bonds, loans and notes will be earmarked for allocation to eligible green projects. This process will be tracked by Yanlord’s internal information systems. Yanlord intends to reach full allocation within 24 months after issuance. Pending allocation, the proceeds will be held in cash or other short-term instruments. Sustainalytics considers this as in line with market practice.
REPORTING
Yanlord intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount allocated to the eligible green Portfolio, the amount allocated by project category, the share of financing vs refinancing, the balance of unallocated proceeds, and project examples. In addition, Yanlord, where feasible, intends to report on relevant impact metrics. Sustainalytics views Yanlord Land Group Limited’s allocation and impact reporting as aligned with market practice.