July 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with CR Construction Group Holdings Limited and there is no established relationship (financial or others) between CIC and CR Construction Group Holdings Limited.
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the CR Construction Group Holdings Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by CR Construction Group Holdings Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with CR Construction Group Holdings Limited. CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. CR Construction Group Holdings Limited is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of CR Construction Group Holdings Limited, nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on CR Construction Group Holdings Limited can only be used by CR Construction Group Holdings Limited and the Financial Institution. The distribution and publication are at the discretion of CR Construction Group Holdings Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-008 |
|---|---|
| Certificate no. | SFCS-2021-003 |
| Date of application | 2021.12.07 |
| Company name | CR Construction Group Holdings Limited |
| Business registration no. | 68079417 |
| Company profile | CR Construction Company Limited (formerly known as China Resources Construction Company Limited from 1999 onwards and T. S. Wong & Company Limited before 1999), an indirect wholly-owned subsidiary of CR Construction Group Holdings Limited (Stock Code: 01582.HK), was established in 1967 carrying out construction business. Over the years, we have accumulated considerable experience in the local market and established a reputation of a reliable building contractor for quality and complex projects. Some of the major projects of CR Construction include Proposed Residential Development at Kwun Tong Town Centre (Areas 2 & 3), Proposed Hotel Development at TCTL38, Tung Chung, Comprehensive Renovation for Beverly Hill at 6 Broadwood Road, Happy Valley, Pak Tin Estate Redevelopment Phase 9, The St. Regis Hong Kong at Wan Chai, One Hennessy at Wanchai, Renovation of China Resources Building, China Unicom (Hong Kong) Global Center at Tseung Kwan O, Redevelopment of Ying Wa Girls’ School, Chu Hai College of Higher Education at Tuen Mun, Run Run Shaw Creative Media Centre of City university of Hong Kong, the Hong Kong Design Institute and the Hong Kong Institute of Vocational Education (Lee Wai Lee) etc. |
| Sustainable financing instrument | Sustainability-linked Loan |
| Application level | Company Level |
CR Construction Group Holdings Limited has established a sustainability strategy with the following elements:
Company’s Sustainability Governance
CR Construction has clearly defined CSR Policy in accordance with SLLP (2019 Version). The CSR Policy declared that CR Construction is committed to the following:
Abide by all applicable statutory and regulatory requirements, international declarations in which its operates
Identify, recognise and understand the needs of all their stakeholders
Conduct its business with honestly and integrity and applying the highest standard
Corporate governance framework that will seek to disclose information openly and transparently beyond legal requirements
Provide equal and equitable working environment, and prohibit any form of discrimination and forced labour
Provide safe, healthy, and reasonable working conditions to ensure the safety and health of staff
Improve their environment performance continuously
Comply with business and professional ethics, and protect intellectual property rights
Actives participation and support of initiatives that benefit the communities they work in.
“Improve their environmental performance continuously” alighted with its proposed SPTs.
Besides, CR Construction also clearly defined governance structure in setting up a governance body to oversee the company’s sustainability strategy. CR Construction has appointed Senior Safety and Environmental Manager to evaluate, select and monitoring eligible projects. Compliance Department will be defined as cross-functional representatives to evaluate, select and monitoring eligible projects. CR Construction will meet regularly to oversee governance of the green investment strategy by annually.
Finally, CR Construction clearly defined sustainability vision and objective:
Vision:
CR Construction has embraced sustainability as the fundamental of its business strategy to enhance the value of the company and its business. Through entering charter, members of our staff and business partners jointly declared to implementing and promoting corporate and site safety, providing top brand quality products and exhibiting excellent energy efficiency along the business journey to pursue the goal of sustainability and our continuous improvement.
Objective:
Improvement in total carbon reduction and carbon intensity against previous year.
All in all, we confirmed that CR Construction provided sufficient information to show oval CSR strategy and governance structure on sustainability policy, which shown in CSR Policy.
CR Construction Group Holdings Limited has confirmed the key sustainability performance indicator(s) and target(s) for monitoring and managing its sustainability performance.
Target Setting
Targets are in line with the following internationally recognized frameworks across financial markets:
Frameworks
CR Construction clearly defined the sustainability objective – improvement in, which is defined one key sustainability performance, which is Total Carbon Emission. CR Construction based on total carbon emission in 2020 as base year.
CR Construction declared the intended improvement is 5%. It is ambitious and meaningful SPT.
All in all, we confirmed that CR Construction has set ambitious and meaningful SPT for SLL. We would like to seek CR Construction can submit 2020 Verification Report for proving 2020 base year data.
CR Construction Group Holdings Limited will prepare Carbon Audit Report within one year from the date of issuance of each sustainable financing instrument and annually thereafter until full allocation of the proceeds. The report will consist of a project description including highlights of green elements. In terms of impact reporting, CR Construction Group Holdings Limited will report on relevant environmental and social metrics of the project.
| Metrics | Total Carbon Emission |
| Base year | 2020 |
| Performance in the base year | 5,492,600 kg CO2-eq |
| Target year | 2021 and each year thereafter until the termination of revolving loan |
| Performance in the target year | 5% Improvement |
| Methodologies | ISO 14064 |
CR Construction will appoint independent verifier for total carbon emission verification in accordance with ISO 14064. They will provide the up-to-date SPT in verification report per annum until the termination of revolving loan.
The approach and methodology of SPT will be based on ISO 14064.
All in all, we confirmed CR Construction has provided sufficient information which aligned with SLLP’s reporting requirements.
| Company’s Sustainability governance | Compliant |
|---|---|
| Target setting | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-008, Certificate no.: SFCS-2021-003) of the CIC Sustainable Finance Certification Scheme with validity from 30-07-2021 to 29-07-2023 .