Project Details
Project
CK Hutchison Holdings Limited Sustainable Finance Framework Second-Party Opinion (2021)
Client
CK Hutchison Holdings Limited
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Hong Kong
Evaluation Date
Oct 2021
Evaluation Summary
Sustainalytics is of the opinion that the CK Hutchison Holdings Limited Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds — Renewable Energy, Energy Efficiency, Sustainable Transportation, Circular Economy & Design, Emergency Response & Pandemic Relief — are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to reduce the environmental footprint of the Group’s operations, lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 7, 8, 9, 11 and 12.
PROJECT EVALUATION / SELECTION
The Company’s Board-level Sustainability Committee is responsible for reviewing assets, projects and investments nominated by the Sustainability Working Group. The Sustainability Committee will be responsible for designating assets, projects and investments as eligible projects upon confirmation of their eligibility. The Sustainability Working Group is comprised of representatives from the Finance, Treasury, Management Services, Corporate Affairs, Human Resources, Legal and Sustainability Departments. The Company’s Group Sustainability Framework, sustainability policies and corporate governance policies are applicable to allocation decisions under the Framework. Sustainalytics considers these risk management systems to be adequate. Sustainalytics considers the project selection and evaluation process as in line with market practice.
MANAGEMENT OF PROCEEDS
The Company’s Sustainability Working Group will track receipt and allocation of net proceeds using a portfolio approach. Net proceeds awaiting allocation will be temporarily invested in cash or cash equivalents, or liquid and marketable instruments not relating to greenhouse gas-intensive activities. This process is in line with market practice.
REPORTING
The Company intends to report on allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include details such as amount invested per category, share of financing vs refinancing, and balance of unallocated proceeds. In addition, CKHH is committed to reporting on relevant impact metrics. Sustainalytics views CKHH’s allocation and impact reporting as aligned with market practice.