Second-Party Opinion Download

Sustainalytics is of the opinion that the CPI Property Group Green Bond Framework aligns with the four core components of the ICMA Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Renewable Energy and Environmentally Sustainable Management of Living Natural Resources and Land Use – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 12.

PROJECT EVALUATION/SELECTION

CPI Property Group’s internal process for evaluating and selecting projects is in line with market practice. The Group has established the Corporate Responsibility Committee (the “CSR committee”) which has oversight for the eligible green project selection process. The initial evaluation and selection process is carried out by the company’s Green Bond Team, who conducts the initial screen on potential projects. After the Green Bond Team has determined that a project is eligible, the Committee conducts a final review before submitting to the Board of Directors for approval.

MANAGEMENT OF PROCEEDS

CPI Property Group’s process for the management of proceeds is in line with market practice. The Group intends to fully allocate the proceeds at issuance. The Group will establish a Green Financing Register, which will include all details on the bond and keep track of all project expenditures, the amount of allocation and any unallocated proceeds. The Register will be reviewed annually by the Green Bond Team to determine if there is a need for any re-allocation, repayments or drawings on the eligible projects and expenditures in the pool.

REPORTING

In their annual report, CPI Property Group will report on the allocation of proceeds and relevant impact metrics. The report will include a portfolio level breakdown by eligible categories for the allocation of the net proceeds of its green bond(s) and give additional details including a list of eligible projects and the remaining balance of unallocated proceeds. Additionally, the company will include a report on relevant impact metrics recommended under the Harmonized Framework for Impact Reporting. CPI Property Group’s allocation and impact reporting are in line with market practice.