September 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with Paul Y. General Contractors Limited and there is no established relationship (financial or others) between CIC and Paul Y. General Contractors 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 Paul Y. General Contractors Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Paul Y. General Contractors Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with Paul Y. General Contractors 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. Paul Y. General Contractors 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 Paul Y. General Contractors 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 Paul Y. General Contractors Limited can only be used by Paul Y. General Contractors Limited and the Financial Institution. The distribution and publication are at the discretion of Paul Y. General Contractors Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-011 |
|---|---|
| Certificate no. | SFCS-2021-013 |
| Date of application | 2021.12.08 |
| Company name | Paul Y. General Contractors Limited |
| Business registration no. | 00621410 |
| Company profile | Headquartered in Hong Kong, Paul Y. Engineering Group Limited is dedicated to providing full-fledged engineering and property services, with operations in Hong Kong, Mainland China, Macau, Singapore and Malaysia. For over 70 years, Paul Y. Engineering has been at the heart of some of the most challenging and impactful construction projects that have shaped the iconic skylines of Hong Kong and many other cities. Our projects include commercial and residential buildings, institutional facilities, highways, airport runways, railways, tunnels, port works, water and sewage treatment facilities etc. We serve our valuable clientele by delivering integrated solutions, from concept to completion and ongoing management, as well as components that best match clients' needs and expectations. Meanwhile, we are deeply committed to our role as a responsible corporate citizen contributing to building harmonious and sustainable communities. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Paul Y. General Contractors Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Green Building |
| Eligibility Criteria | Paul Y. General Contractors Limited will finance a new building project which targets at BEAM Plus Gold Rating. |
Paul Y. General Contractors Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Paul Y. General Contractors Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
Paul Y. General Contractors Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | Construction of Public Housing Development at Chiu Shun Road, Tseung Kwan O |
| Location | Tseung Kwan O, boundary by Chiu Shun Road to the northwest |
| Project description | One domestic block of 38 domestic storeys, setting on transfer plates. 3- storey podium block containing a podium roof garden, a multi-storey carpark block of 2 plus 3 split levels of carpark spaces, a bare-shell neighbourhood elderly centre, property management agent office, owner’s corporations office, artisan’s workshop and cleansing contractor office |
| Highlights of green elements and estimated environmental impact | • Reduce the dumping of total construction waste (excluding excavated soil) by more than 30% by weight or volume • Annual saving of consumption of potable water of not less than 20% • Solar Reflectance Index (SRI) 78 or higher to at least 50% of the total roof area • Using CIC carbon assessment tools • Using Green Label NRMM for generator |
Paul Y. General Contractors Limited (“Paul Y”) proposes to raise green loan which will be exclusively used to finance new eligible green projects with BEAM Plus gold rating. Paul Y also identifies the designated project which is the Construction of Public Housing Development at Chiu Shun Road, Tseung Kwan O (the “Project”).
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Paul Y. General Contractors Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
Paul Y claims a governance body has been set up to evaluate and select eligible projects. The supporting document named “Green Finance – Policies and Procedures” provides proof to such claim.
It states that the eligible projects are identified and selected via a process that involves participants from various functional areas. Representatives from the Safety & Environmental Department and Treasury team together with CSR Committee involvement to review and select Eligible Projects according to the designated criteria.
The shortlisted projects will be presented to the Executive Board for approval.
Paul Y. General Contractors Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Paul Y. General Contractors Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Paul Y. General Contractors Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with n/a
Paul Y claims a designated account in the name of the borrower will be opened with the lending bank. All of the loan proceeds, project receipts and payments will be made through the designated account.
Supporting document “Green Finance – Policies and Procedures” is provided to prove such claim.
Applicant has confirmed the use of fund registry template for the Management of Proceeds.
Paul Y. General Contractors Limited is committed to transparent reporting and will publish financial and sustainability / ESG report within one year from the date of issuance of each sustainable financing instrument and annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, Paul Y. General Contractors Limited will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Green Building |
| Metrics | tal carbon emissions (permanent works) Total carbon emissions (temporary works and site impacts) |
| Methodologies | |
| Project Categories | Green Building |
| Metrics | Percentage of energy use reduced/avoided compared with local baseline or building code |
| Methodologies | The methodology of the energy use reduced/avoided will make reference to the latest Building Energy Code (BEC) or Appendix G of ASHRAE 90.1-2007 or equivalent. |
| Project Categories | Green Building |
| Metrics | Percentage of water reduced/avoided compared with local baseline |
| Methodologies | Calculation is based on reduction of water consumption when comparing with a similarly occupied space whose water fittings and appliances conform to a baseline performance. The calculation takes into account the number of occupants, male to female ratio, and the number of operational days per annum as |
| Project Categories | Green Building |
| Metrics | Waste minimised, reused, recycled in percentage of total waste and/or in tonnes p.a |
| Methodologies | Environment, Transport and Works Bureau. Technical Circular (Works) No. 19/2005. Environmental Management on Construction Sites. (ETWB TWC 19/2005) should be used as a guide to the nature of reporting and recording keeping for calculation of % recycling and reuse |
| Project Categories | Green Building |
| Metrics | Calculate/record the green roof area (square meter) |
| Methodologies | As-fit drawing and site photo to demonstrate the green roof area. |
Paul Y promises to report the allocation of proceeds and environmental impacts of the project as part of the sustainability / ESG report annually or upon request by the lending bank on periodic basis.
Paul Y will report the distribution of proceeds earmarked to eligible green projects at the project level, as part of the financial report.
Paul Y has well established the KPIs to be reported in the impact report with reference to proper methodology.
| Use of proceeds | Compliant |
|---|---|
| Project evaluation and selection | Compliant |
| Management of proceeds | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-011, Certificate no.: SFCS-2021-013) of the CIC Sustainable Finance Certification Scheme with validity from 30-09-2021 to 29-09-2023 .