Second-Party Opinion Download

Sustainalytics is of the opinion that the Jingdan New Energy Investment Green Loan Framework is credible and impactful and aligns with the four core components of the Green Loan Principles 2021 (GLP). This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds, Renewable Energy, is aligned with those recognized by the Green Loan Principles 2021. Sustainalytics considers that the eligible category will increase the share of renewable energy generation in China and advance the UN Sustainable Development Goals, specifically SDG 7.  

PROJECT EVALUATION / SELECTION

Jingdan’s process for project evaluation and selection will be overseen by the Sustainability Committee (the “Committee”), comprised of the Chief Executive Officer, the Chief Financial Officer, the Chief Operating Officer and the Head of Capital. The Committee will be responsible for the verification and compliance of environmental impact regulations and the screening of eligible projects. The proceeds of the Green Loans will be allocated exclusively to align with eligible project categories, and the Committee will monitor periodically to ensure projects continually meet eligibility criteria set out in the Framework. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

Jingdan’s processes for management of proceeds is managed by the Sustainability Committee. Two designated treasurers will be responsible for handling daily proceeds transactions and will report to the Chief Financial Officer, who oversees the management of proceeds. Proceeds will be used to finance projects in construction stage or refinance completed projects. Proceeds used to finance construction projects will be tracked through short-term or shareholder loan repayments with signed contracts and payment receipts. The equivalent amount of net proceeds will be earmarked for allocation the eligible green projects. This is in line with market practice. 

REPORTING

Jingdan commits to reporting annually on allocation of proceeds to lenders or until facilities are fully drawn down. Allocation reporting will include allocation of funds to eligible green projects. In addition, Jingdan is committed to reporting on relevant impact metrics. Sustainalytics views Jingdan’s allocation and impact reporting as aligned with market practice.