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Second-Party Opinion Download

Project Details

Project

Zhongliang Holdings Group Sustainable Finance Framework Second-Party Opinion (2021)

Client

Zhongliang Holdings Group

Project Type

Sustainability Bond/Loan

Industry Group

-

Use of Proceeds

-

Location

China

Evaluation Date

Apr 2021

Evaluation Summary

Sustainalytics is of the opinion that the Zhongliang Holdings Group Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, and Green Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories  for the use of proceeds are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and Green Loan Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 6, 7, 9, 11 and 12. 

PROJECT EVALUATION / SELECTION

Zhongliang’s internal process in evaluation and selecting projects is managed by the ESG Working Group (ESGWG), which is composed of the ESG Committee and representatives from relevant departments.  The ESGWG will review and select eligible projects according to the criteria established in the Framework. Shortlisted eligible projects will be presented to Zhongliang’s senior management for final approval. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Zhongliang’s process for management of proceeds is overseen by the Finance team. The Company will track the allocation of proceeds using its internal system. Zhongliang is committed to allocating net proceeds to Eligible Projects on a best effort basis within one year of issuance. Unallocated proceeds may be held in cash or cash equivalents or used to repay debt not linked to emission-intensive activities. Should an asset cease to fulfil the eligibility criteria or exit the owned portfolio, Zhongliang will, on a best effort basis, substitute these projects as soon as reasonably practicable. This is in line with market practice.

REPORTING

Zhongliang is committed to reporting on the allocation of proceeds on an annual basis until allocation has been fully completed. The allocation reporting will include details such as allocated, balance of unallocated proceeds and type of temporary investment, share of financing vs. refinancing. In addition, Zhongliang will strive on a best effort basis, to reporting on relevant impact indicators. Sustainalytics views Zhongliang’s allocation and impact reporting as aligned with market practice.

https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/zhongliang-holdings-group-sustainable-finance-framework-second-party-opinion.pdf?sfvrsn=2482e9c4_1