Project Details
Project
Lei Shing Hong Green Finance Framework Second-Party Opinion
Client
Lei Shing Hong
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Hong Kong
Evaluation Date
May 2020
Evaluation Summary
Sustainalytics is of the opinion that the Lei Shing Hong 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 2018. 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) Renewable Energy, (iv) Pollution Prevention and Control, (v) Sustainable Water Management, and (vi) Clean Transportation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible projects will reduce the carbon footprint and improve the environmental performance of Lei Shing Hong’s operations while advancing Sustainable Development Goals (SDGs), particularly SDG 6, 7, 9, 11 and 12.
PROJECT EVALUATION/SELECTION
Lei Shing Hong’s eligible projects will be identified by a working group, which is comprised of cross-departmental representatives from LSH’s Corporate Office Team, Property Team, and Management Team. Final approval of shortlisted projects will be conducted by the Sustainability Committee. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds will be managed by the company’s Treasury Team using an internal register which includes information on the eligible projects list and the allocation of the use of proceeds. Pending full allocation, the unallocated proceeds will be held in short-term liquid money instruments such as cash, cash equivalent and marketable securities according to the Group’s Treasury’s general liquidity guidelines. Sustainalytics views this process in line with market practice.
REPORTING
Lei Shing Hong Limited intends to provide an annual allocation report on its website, including allocated and unallocated proceeds as well as the list of eligible projects financed. In addition, where feasible, Lei Shing Hong Limited has committed to reporting on relevant impact metrics. LSH intends to disclose the relevant benchmarks and calculation methodologies and engage with an independent third party to assure the content of its impact reporting. Sustainalytics views Lei Shing Hong Limited’s allocation and impact reporting as aligned with best market practice.