Second-Party Opinion Download

Sustainalytics is of the opinion that the Dexin 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 – (i) Green Buildings, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Renewable Energy – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories are expected to reduce the carbon footprint of Dexin’s operations in China while advancing the UN Sustainable Development Goals (SDGs), specifically SDGs 6, 7, 9 and 11.

PROJECT EVALUATION/SELECTION

Dexin’s internal process in evaluating and selecting projects is overseen by the Sustainable Development Committee (“Committee”) comprised of representatives from design, construction, finance and treasury, risk management and legal teams. The Committee will meet at least once a year. Dexin may engage with external third parties to evaluate the environmental impact of eligible projects prior to the decision making for project selection. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Dexin’s Finance team will be responsible for managing net proceeds using a register. Pending full allocation, proceeds will be invested in cash or cash equivalents as part of the Dexin's treasury and cash management policies. This is in line with market practice.

REPORTING

Dexin intends to report on allocation and impact of proceeds on its “Corporate Social Responsibilities” section of the Annual Report or issue a separate report on an annual basis until full allocation and thereafter for material changes to eligible green portfolio. Allocation reporting will include the list of eligible projects and the matching proceeds raised from bonds, the balance of unallocated proceeds, and the share of financing versus refinancing. In addition, where feasible, Dexin is committed to reporting on relevant impact metrics. Sustainalytics views Dexin’s allocation and impact reporting as aligned with market practice.