Project Details
Project
JD.com Green Finance Framework Second Party Opinion 2021
Client
JD.com
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
China
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that the JD.com Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. 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) Circular Economy Adapted Products, (iv) Clean Transportation, and (v) Renewable Energy – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to improve JD.com’s environmental performance and help advance the UN Sustainable Development Goals, specifically SDGs 7, 9 ,11 and 12.
PROJECT EVALUATION / SELECTION
JD.com’s ESG Leadership Group (ELG), comprised of executive managers and senior management across functions, will be responsible for reviewing and selecting eligible projects. JD.com, under the supervision of ELG conducts environmental and social risk assessments in the project identification stage, which is applicable to all allocation decisions made under the Framework. Sustainalytics considers this risk management system to be adequate and the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
JD.com’s treasury team will track the allocations through an internal register. Full allocation is intended within one year from issuance. Pending allocation, proceeds will be invested in cash or cash equivalents or be used to repay JD.com’s existing borrowings. This is in line with market practice.
REPORTING
JD.com intends to report on the allocation and impact of proceeds in its sustainability reports, annual reports or on its corporate website on an annual basis until full allocation. Allocation reporting will include information on the aggregate amount allocated to eligible projects, the unallocated amount, the type of temporary investment of unallocated proceeds, and the proportion of financing and refinancing. In addition, JD.com is committed to reporting on relevant impact metrics where feasible. Sustainalytics views JD.com’s allocation and impact reporting as aligned with market practice.