Project Details
Project
MTR Sustainable Finance Framework Second-Party Opinion
Client
MTR
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Hong Kong
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the MTR Sustainable Finance Framework is credible and impactful and aligns with the Green Bond Principles 2018, Social Bond Principles 2020, Sustainability Bond Guidelines 2018 and Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Low Carbon Transportation, (iii) Energy Efficiency, (iv) Green Buildings, (v) Adaptation to Climate Change, (vi) Biodiversity and Conservation, (vii) Water Management, (viii) Waste Management, (ix) Pollution Prevention and Control, (x) Employment Generation and Unemployment Prevention, and (xi) Affordable Basic Infrastructure – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will contribute to the decarbonization of Hong Kong’s transport sector and provide socioeconomic benefits while advancing the UN Sustainable Development Goals, specifically SDG 1, 6, 7, 11, 12, 13, and 15.
PROJECT EVALUATION/SELECTION
Each proposal will be reviewed by MTR’s Treasury Department and Sustainability Team of the Public Affairs Department. The Executive Committee or, in some cases, the Board of Directors, is responsible for final approval. Sustainalytics considers the project evaluation and selection process as in line with market practice.
MANAGEMENT OF PROCEEDS
MTR will track bond and loan proceeds using a Sustainable Finance Register which will be managed by the Treasury Department within the Finance Division. Pending allocation, net proceeds will be invested in bank deposits or to repay general credit facilities. This process is in line with market practice.
REPORTING
MTR Corporation Limited intends to report allocation proceeds on a category basis and if feasible, on a project basis, on its website on an annual basis until full allocation. In addition, MTR Corporation Limited is committed to reporting on relevant impact metrics where applicable. Sustainalytics views MTR Corporation Limited’s allocation and impact reporting as aligned with market practice.