Second-Party Opinion Download

Sustainalytics is of the opinion that the Hysan Green Finance Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018 and Green Loan Principles. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds namely as (i) Green Buildings, (ii) Energy Efficiency, (iii) Waste Management and Recycling and (iv) Climate Change Adaptation are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible projects will improve the carbon footprint and environmental performance of Hysan’s building under management. Sustainalytics views that the eligible activities will contribute to advance SDGs 7, 11, 12 13 and 17.

PROJECT EVALUATION/SELECTION

Hysan has a two-step project evaluation and selection process. Cross departmental representatives from Hysan’s technical services, property management, sustainability department and treasury department will form a working group selecting an initial set of eligible projects, which are to be validated and approved by Hysan’s Sustainability Committee including the senior management, which is aligning with market practice.

MANAGEMENT OF PROCEEDS

Hysan’s processes for management of proceeds is aligning with market practice. Hysan will record and earmark each green funding transaction (‘GFT’) separately in its corporate general funding accounts. Hysan will maintain a register to track the use of the green proceeds, which includes information of the type of funding transaction and the allocation of the use of proceeds. Pending full allocation, any unallocated proceeds will be held in line with Hysan’s normal liquidity management policy.

REPORTING

Hysan commits to report to investors annually on the allocation of proceeds on its website, and as part of Hysan’s Corporate Responsibility Reports. The (i) allocation report will include the type of funding, the name and description of Eligible Projects, as well as the remaining balance of unallocated proceeds. With regards to the (ii) impact report, Hysan has committed to disclose data on relevant KPIs for each eligible category, such as the amount of energy saved (in kWh), CO₂eq avoided, the amount of waste recycled (in kg), the amount of wastewater reused (in m³), area of rooftop farming, and green roofs and green walls on its buildings (in m²). Sustainalytics views the scope and granularity of Hysan’s impact reporting to be in line with current market practice.