Second-Party Opinion Download

Sustainalytics is of the opinion that the Kaisa Group Holdings Limited Sustainable Finance Framework aligns with the four core components of the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020 and Green Loan Principles 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Pollution Prevention and Control, Sustainable Water and Wastewater Management, Climate Change Adaptation, Renewable Energy, Clean Transportation, Affordable Housing, and Affordable Basic Infrastructure and Essential Services – are aligned with those recognized by the Green Bond Principles and the Social Bond Principles, respectively. Sustainalytics considers that the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 6, 7, 9, 11, 12 and 15.

PROJECT EVALUATION/SELECTION

Kaisa Group Holdings Limited’s internal process for evaluating and selecting projects is led by the Group’s Sustainable Finance Working Group, comprised of representatives from the Property Management, Sustainability, Treasury, Investor Relations and Legal departments. Project eligibility is determined according to the criteria defined in the Framework. Shortlisted projects identified by the Property Management Department are then presented to the broader Working Group for approval. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Kaisa Group’s Sustainable Finance Working Group is responsible for the management of proceeds using a portfolio approach. Kaisa will maintain a register to track of the use of proceeds for each eligible project. Pending allocation proceeds will be temporarily deposited into Kaisa’s General Funding Account in accordance with the Group’s liquidity guidelines for short term deposits or investments. This is in line with market practice.

REPORTING

Kaisa Group Holdings Limited intends to report on the allocation of proceeds in the Group’s Annual Report, ESG or Sustainability report, or on its website on an annual basis until full allocation, including details of outstanding SFT and balance of unallocated proceeds. In addition, where feasible, Kaisa is committed to reporting on relevant green and social impact metrics. Sustainalytics views Kaisa’s allocation and impact reporting as aligned with market practice.