Second-Party Opinion Download

Sustainalytics is of the opinion that the Zhenro Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Green Buildings, (ii) Renewable Energy, (iii) Energy Efficiency, (iv) Pollution Prevention and Control, and (v) Sustainable Water Management – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will reduce the carbon footprint and improve the environmental performance of Zhenro’s operations while advancing the UN Sustainable Development Goals, specifically SDG 6, 7, 11, and 12.

PROJECT EVALUATION/SELECTION

Zhenro’s eligible projects will be evaluated and selected by an inter-departmental Green Bond Committee comprised of representatives from Treasury, Controlling, Legal, Engineering, Design, Operations and Investor Relations, and relevant business units. Final approval of shortlisted projects will be conducted by the Committee. Sustainalytics considers Zhenro’s project evaluation and selection process as in line with market practice.

MANAGEMENT OF PROCEEDS

Zhenro commits to set up a Green Bond Register to earmark and track the allocation of net proceeds to eligible green projects. The Treasury Team will manage allocation of proceeds, and the Green Bond Committee will conduct an annual review on the green project portfolio. Pending full allocation, the unallocated proceeds will be held in cash or cash equivalents, or other short-term liquid marketable instruments. This process is in line with market practice.

REPORTING

Zhenro intends to provide an annual allocation and impact report on its website until the full allocation of proceeds. The allocation report will include the following: (i) total amount of outstanding Green Bonds, (ii) aggregated amount per respective eligible green project, (iii) balance of unallocated net proceeds. Regarding impact reporting, Zhenro intends to report on impact metrics, and where feasible, impact assessment methodologies to ensure transparency. Sustainalytics views Zhenro’s allocation and impact reporting as aligned with market practice.